India Hydroelectric Power Market

India Hydroelectric Power Market Size and Share: 

The India hydroelectric power market size reached 50.00 GW in 2024. Looking forward, IMARC Group expects the market to reach 56.16 GW by 2033, exhibiting a growth rate (CAGR) of 1.30% during 2025-2033. India hydroelectric power market share is growing because of strong government support through policies offering financial incentives, streamlined approvals, and carbon reduction goals, alongside significant private sector investments and public-private partnerships (PPP) that provide capital, innovation, and operational efficiency for accelerated project development and energy transition.

India Hydroelectric Power Market Trends:

Government Policies and Initiatives

India hydroelectric power sector is greatly influenced by the strong commitment of the governing body to renewable energy development, supported by various policies and initiatives. To achieve its ambitious renewable energy targets, the governing body is implementing incentives such as tax reductions, subsidies, and favorable tariff arrangements, which promote the development of hydropower projects. Moreover, the government provides financial assistance and is simplifying approval procedures, facilitating the rapid advancement of hydroelectric initiatives. This focus on renewable energy is further propelled by India’s initiatives to lower carbon emissions and transition from fossil fuels towards cleaner energy alternatives. In accordance with this vision, the government is progressively aiming to improve the efficiency of hydropower initiatives. For instance, in 2024, state-operated hydroelectric power generation company SJVN announced India’s launch of a tender for 6GW of renewable energy with storage to provide reliable power during peak hours. The initiative was part of India’s effort to reach 500GW of non-fossil fuel power capacity, with plans to connect 35GW of solar and wind energy by March 2025. This project aimed to enhance the country’s energy security and support its decarbonization goals.

Private Sector Investment and Public-Private Partnerships (PPP)

Investment from the private sector and public-private partnerships (PPPs) are essential for the growth of the market. The focus of the government on infrastructure improvement is motivating private firms to engage in the hydropower industry, pursuing lucrative chances in renewable energy. Private investments provide crucial funding while also bringing technological advancements, improved operational efficiency, and enhanced project management techniques. PPPs offer a cooperative framework enabling the government and private companies to exchange resources, risks, and advantages, thus facilitating the swift execution of hydroelectric initiatives. This collaboration enables the government to utilize its regulatory and administrative skills while the private sector offers specialized technical expertise and quicker implementation. These collaborations reduce the financial and operational risks linked to extensive hydropower initiatives. In 2024, India sanctioned two major hydropower initiatives in Arunachal Pradesh, totaling a capacity of 426 MW and an investment of Rs 3,689 crore. The state, possessing a significant hydropower capacity of 58,000 MW, is positioned to emerge as a major hydropower center, with projects amounting to Rs 1 lakh crore planned. The government aimed for an ambitious goal of achieving 12,500 MW operational capacity in two years, backed by central public sector enterprises (CPSUs) such as NHPC and NEEPCO. These investments showcase the successful partnership between the public and private sectors in advancing hydropower development in India.

India Hydroelectric Power Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type of hydroelectric plant, component, and end use.

Type of Hydroelectric Plant Insights:

• Large Hydroelectric Plants (Above 25 MW)
• Small Hydroelectric Plants (1–25 MW)
• Micro Hydroelectric Plants (Up to 1 MW)

The report has provided a detailed breakup and analysis of the market based on the type of hydroelectric plant. This includes large hydroelectric plants (above 25 MW), small hydroelectric plants (1–25 MW), and micro hydroelectric plants (up to 1 MW).

Component Insights:

• Turbines
• Generators
• Transformers
• Control Systems

A detailed breakup and analysis of the market based on the component have also been provided in the report. This includes turbines, generators, transformers, and control systems.

End Use Insights:

• Residential
• Commercial
• Industrial

The report has provided a detailed breakup and analysis of the market based on the end use. This includes residential, commercial, and industrial.

Regional Insights:

• North India
• South India
• East India
• West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Hydroelectric Power Market News:

• In March 2025, Himachal Pradesh signed MoUs with Telangana to establish the 400 MW Seli and 120 MW Miar hydroelectric power projects in Lahaul-Spiti. The projects, estimated at Rs 6,200 crore, will create employment for 5,000 youth and generate power for both states.
• In August 2024, Union Minister Manohar Lal launched the JAL VIDYUT DPR portal and a comprehensive CEA regulations compendium to enhance transparency and efficiency in India’s hydropower and electricity sector. The portal monitored survey and investigation activities for hydroelectric and pumped storage projects, while the compendium consolidated key regulations under the Electricity Act, 2003. These initiatives aimed to streamline project development and improve grid stability.

India Hydroelectric Power Market Report Coverage:

Key Questions Answered in This Report:

• How has the India hydroelectric power market performed so far and how will it perform in the coming years?
• What is the breakup of the India hydroelectric power market on the basis of type of hydroelectric plant?
• What is the breakup of the India hydroelectric power market on the basis of component?
• What is the breakup of the India hydroelectric power market on the basis of end use?
• What is the breakup of the India hydroelectric power market on the basis of region?
• What are the various stages in the value chain of the India hydroelectric power market? 
• What are the key driving factors and challenges in the India hydroelectric power market?
• What is the structure of the India hydroelectric power market and who are the key players?
• What is the degree of competition in the India hydroelectric power market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India hydroelectric power market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India hydroelectric power market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India hydroelectric power industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.