India Small Hydropower Market

India Small Hydropower Market Size and Share: 

The India small hydropower market size reached USD 124.46 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 204.04 Million by 2033, exhibiting a growth rate (CAGR) of 5.2% during 2025-2033. Government initiatives promoting renewable energy, the need for rural electrification, and the country's abundant water resources suitable for small-scale projects are some of the factors propelling the growth of the market.

India Small Hydropower Market Trends:

Growing Expansion of Renewable Energy

India is undergoing a significant transformation in its energy sector, focusing on increasing the share of renewable sources. The country has set ambitious goals to enhance its capacity in solar, wind, hydroelectric, and other renewable energies. This shift aims to reduce dependence on fossil fuels, decrease greenhouse gas emissions, and promote sustainable development. The government's policies and initiatives are designed to attract investments, encourage technological advancements, and facilitate the integration of renewable energy into the national grid. Challenges such as infrastructure development, financing, and regulatory frameworks are being addressed to ensure the successful implementation of these initiatives. India's commitment to renewable energy reflects its dedication to environmental sustainability and energy security. As of October 2024, India's small hydropower capacity has reached 5.07 GW contributing to the nation's total renewable energy capacity of 203.18 GW. This growth underscores India's commitment to expanding its renewable energy portfolio. ​This significant progress aligns with India's goal of achieving 500 GW of non-fossil fuel electricity generation capacity by 2030.

Strategic Enhancement of Hydropower Capacity

India is actively enhancing its hydropower capacity to meet escalating electricity demand. The government has optimized hydropower generation, adding additional capacity to the grid. This initiative aligns with directives for coal and gas-based thermal plants to operate during peak summer months, aiming to address the anticipated peak demand and prevent potential outages during hotter-than-usual seasons. Beyond immediate measures, India is investing in long-term hydropower projects, with significant capacity currently under construction, projected to increase total hydro capacity in the coming years. These efforts underscore India's commitment to bolstering its energy infrastructure, ensuring a stable and sustainable power supply amidst growing consumption needs. For instance, in May 2024, the Indian government optimized hydropower generation to address rising peak power demand, adding an extra 4 GW capacity. This move follows directives for coal and gas-based thermal plants to operate during summer months, aiming to meet the anticipated 240 GW peak demand and prevent potential outages during the hotter-than-usual season.

India Small Hydropower Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on capacity and component.

Capacity Insights:

• Up to 1 MW
• 1–10 MW

The report has provided a detailed breakup and analysis of the market based on the capacity. This includes up to 1 MW and 1–10 MW.

Component Insights:

• Turbine
• Generator
• Electric Infrastructure
• Intake Valves and Penstock
• Others

A detailed breakup and analysis of the market based on the component have also been provided in the report. This includes turbine, generator, electric infrastructure, intake valves and penstock, and others.

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 Small Hydropower Market News:

• In February 2025, ​Arunachal Pradesh Deputy Chief Minister reviewed the state's small hydropower projects, emphasizing alignment with Atmanirbhar Arunachal and India's net-zero goals. The state has allocated 35 small hydropower projects totaling 570.75 MW, expecting an investment of INR 7,000 crore and creating 7,500 jobs. Upon completion, these projects are projected to generate INR 58.25 crore annually in revenue from free power.
• In July 2024, the Indian Renewable Energy Development Agency Limited (IREDA) announced its plans to invest approximately INR 290 crore in Nepal's 900 MW Upper Karnali Hydro-Electric Power Project. This strategic move aims to enhance regional energy security and sustainable development, potentially benefiting India's renewable energy landscape.

India Small Hydropower Market Report Coverage:

Key Questions Answered in This Report:

• How has the India small hydropower market performed so far and how will it perform in the coming years?
• What is the breakup of the India small hydropower market on the basis of capacity?
• What is the breakup of the India small hydropower market on the basis of component?
• What are the various stages in the value chain of the India small hydropower market? 
• What are the key driving factors and challenges in the India small hydropower market?
• What is the structure of the India small hydropower market and who are the key players?
• What is the degree of competition in the India small hydropower 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 small hydropower market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India small hydropower 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 small hydropower 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.