India’s wind energy sector is aiming for 300 GW of capacity by 2035, a sharp rise from the current 59.2 GW. Industry leaders at the Windergy 2026 conference highlighted repowering of old turbines and domestic manufacturing as key drivers. While the potential for the supply chain is significant, investors should track risks involving transmission infrastructure, land acquisition, and the financial health of state distribution companies.
The wind energy sector in India has set its sights on a new, ambitious target of reaching 300 GW of capacity by 2035. This projection, discussed by industry stakeholders and officials at the Windergy 2026 conference, marks a major step up from the existing 100 GW target set for 2030. As of September 30, 2026, India’s installed wind capacity stands at approximately 59.2 GW, with another 43 GW currently in the pipeline under construction. This combined total of over 100 GW suggests the industry is moving from a planning phase into a period of rapid installation.
Growth Drivers: Repowering and Offshore Expansion
To achieve this 300 GW target, the government and industry are focusing on two major strategies. The first is repowering, which involves replacing older, smaller wind turbines with newer, high-capacity models. The ministry is targeting the repowering of 25 GW of existing capacity. This approach is efficient because it utilizes sites that are already connected to the grid and have proven wind potential, saving time on land acquisition and permitting.
The second pillar is a shift toward offshore wind energy, particularly off the coast of states like Tamil Nadu. While offshore projects face higher initial costs and engineering challenges compared to onshore projects, they allow for massive scale. A key monitorable for investors will be how the government resolves pricing and power purchase agreements (PPAs) for these projects, as the financial viability of offshore ventures often depends on these long-term contracts.
Manufacturing and Supply Chain Shifts
India is also evolving into a significant global hub for wind turbine manufacturing. Domestic component localization currently stands at approximately 65%, with industry roadmaps targeting 85% in the coming years. This transition is important for local manufacturers as it reduces dependency on imported components and can help protect profit margins against currency fluctuations and global supply chain disruptions. The push for 300 GW implies a consistent need for domestic supply, which may benefit local original equipment manufacturers and component suppliers in the long run.
Risks and Execution Challenges
While the growth outlook is positive, the sector faces several structural risks that investors should monitor. A primary challenge is the readiness of grid infrastructure. Even if turbines are installed, projects cannot generate revenue without reliable transmission lines to carry the electricity to consumers. Delays in transmission projects, such as the Green Energy Corridor, can stall execution.
Additionally, the financial health of state distribution companies (Discoms) remains a persistent concern. If these companies face financial stress, they may delay payments to wind power producers, which can strain the cash flow of power developers. Furthermore, land acquisition continues to be a bottleneck for large-scale onshore projects. Investors should watch for updates on project execution timelines and clear policy support, as these factors will determine whether the industry can meet its annual installation targets, which are projected to scale from 6 GW in the current fiscal year to over 13 GW by FY31.