India stands at a decisive stage where economic growth must advance in parallel with environmental sustainability. According to an IMARC Group report, the Indian green technology and sustainability market reached USD 837.2 Million in 2024, reflecting the nation’s growing commitment to sustainable development. As India accelerates its shift toward renewable energy, smart infrastructure, and environmentally responsible practices, artificial intelligence (AI) is emerging as a key enabler. Through predictive analytics, machine learning, and IoT-driven insights, AI is transforming the management of energy, waste, agriculture, and water resources. These applications are not only reducing carbon emissions but also strengthening climate resilience and resource efficiency. In this context, the following areas illustrate how AI is reshaping India’s green technology ecosystem, driving innovation across energy, waste, agriculture, and sustainability initiatives.
AI-Powered Renewable Energy Management: Optimizing Solar, Wind, and Grid Systems
India’s renewable energy sector is undergoing a rapid digital transformation, with artificial intelligence playing a strong role in optimizing solar, wind, and grid systems. As per industry reports, the Revamped Distribution Sector Scheme (RDSS) has sanctioned more than 20 crore smart meters, of which over two crores have been installed as of July 2025, creating the foundation for AI-driven, demand-responsive grids.
Moreover, AI-based forecasting improves the accuracy of renewable energy generation by predicting solar irradiance, wind flow, and demand fluctuations, thereby helping utilities balance supply and reduce wastage. Smart grid platforms, supported by machine learning, enable real-time monitoring and automated responses to system overloads, ensuring a reliable power supply across regions. Besides this, predictive maintenance further reduces costly disruptions by detecting faults in infrastructure at an early stage. With India targeting 500 GW of renewable capacity by 2030, the integration of AI in digital twins, energy storage management, and grid stabilization is central to building scalable and efficient systems.
Smart Waste Management and Recycling: AI Solutions for a Cleaner India
Rapid urbanization has intensified India’s waste management challenges, making AI an essential tool for improving collection, segregation, and recycling practices. Computer vision technology powers AI-enabled sorting machines capable of distinguishing recyclable materials with greater precision, reducing contamination and enhancing recovery. In addition to this, predictive analytics is helping municipalities optimize waste collection routes, lowering fuel usage and operational costs.
A recent initiative by Madurai Corporation under the Tamil Nadu Innovation Initiatives (TANII) highlights AI’s growing adoption. In August 2025, the city deployed 60 AI-powered cameras to monitor waste accumulation and illegal dumping, particularly around critical zones like the Vaigai River and Meenakshi Amman Temple. Costing INR 50 lakh, the system issues real-time alerts to sanitary inspectors and links data to the Integrated Command and Control Centre (ICCC), improving efficiency. With India generating over 62 Million tonnes of waste annually, AI is enabling a shift toward circular economy models, reducing landfill dependency, and fostering cleaner urban environments.
Sustainable Agriculture and Water Management: AI for Resource Efficiency
Agriculture, which consumes almost 78% of India’s freshwater resources, is benefiting significantly from AI-enabled innovations. The Government of India launched the Digital Agriculture Mission in August 2025, to accelerate digital adoption across the sector. Furthermore, precision farming powered by AI combines satellite imagery, IoT sensors, and predictive modeling to optimize crop yields while conserving inputs such as water, fertilizer, and pesticides. AI-based irrigation systems analyze soil conditions and weather forecasts to distribute water efficiently, improving resilience against erratic rainfall and drought.
A landmark development came in May 2025 with the launch of the Haryana Water Resource Atlas 2025, an AI-enabled geospatial tool designed to monitor groundwater levels and cropping patterns. Developed by HARSAC, it offers real-time insights into aquifers, recharge zones, and canal systems. By equipping farmers and policymakers with actionable data, AI strengthens food security, reduces environmental impact, and advances the goal of sustainable rural development.
Shaping a Greener Future: AI’s Strategic Role in India’s Sustainability Goals
Artificial intelligence is becoming integral to India’s long-term sustainability roadmap, aligning with national commitments under the Paris Agreement and Net Zero 2070 target. AI systems are streamlining carbon monitoring, optimizing industrial energy use, and accelerating clean technology deployment across multiple sectors. In July 2025, the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) launched an initiative to deliver AI-powered climate advisories through its iSAT platform, supported by Monsoon Mission III. The upgraded system provides hyper-local, real-time recommendations on sowing, irrigation, and pest management, reaching farmers through accessible channels like WhatsApp bots. This initiative supports sustainable agriculture targets and contributes to national goals of improving productivity, conserving water resources, and strengthening food security. Additionally, AI-driven ESG tracking platforms enhance transparency, enabling businesses to align operations with global standards. As India advances industrial growth alongside ecological responsibility, AI is strengthening the foundation for sustainable economic competitiveness.
Driving the EV Revolution: AI-Powered Electric Mobility and Smart Charging
India’s electric mobility transition is accelerating, with artificial intelligence at the core of its expansion. AI enables predictive analytics for charging demand, optimizing grid loads, and scheduling sessions during off-peak hours. Vehicle-to-grid (V2G) systems powered by AI allow EVs to return surplus energy, supporting renewable integration. Fleet operators employ AI for route planning, predictive maintenance, and battery health monitoring, improving efficiency and lowering costs. Smart charging stations balance renewable supply with real-time demand, advancing sustainable adoption. In August 2025, Bengaluru-based startup E3 Electric.Ai unveiled India’s first AI-powered modular electric two-wheelers, showcasing AI’s role in design, manufacturing, and affordability. Beyond mobility, AI-enabled EV ecosystems stabilize energy networks, reduce emissions, and strengthen India’s goal of 30% EV penetration by 2030.
Decarbonizing Industry: AI in Carbon Capture, Utilization, and Storage (CCUS)
As heavy industries remain a major contributor to India’s emissions, AI is being deployed to accelerate the adoption of carbon capture technologies. With national goals to reduce carbon intensity by 45% and cut emissions by 1 Billion tons by 2030, AI is accelerating CCUS adoption. Machine learning models monitor emissions in real time, detecting leakage points and optimizing capture processes. AI-powered simulations evaluate storage site safety, ensuring secure long-term sequestration. In parallel, advanced analytics identify utilization pathways, converting captured CO2 into fuels, materials, or chemicals. By integrating with industrial IoT systems, AI reduces operational costs while scaling adoption in sectors like steel and cement. These innovations align industrial activity with climate commitments, positioning India as a leader in carbon technologies while maintaining industrial competitiveness in global markets.
Closing the Loop: AI-Enabled Circular Economy and Sustainable Manufacturing
Manufacturing sector is undergoing a transition toward circular economy models, supported by artificial intelligence. AI systems track resource flows across supply chains, identifying inefficiencies and opportunities for recycling or reuse. Predictive analytics assists in material recovery by forecasting product end-of-life cycles, while AI-driven quality control minimizes defects and energy waste. Moreover, integration with blockchain enhances transparency, assuring compliance with environmental standards and boosting consumer trust. Notably, in March 2025, Goldi Solar inaugurated India’s first AI-powered solar module manufacturing plant in Surat, featuring advanced automation, robotic inspections, and smart sorting systems. This milestone illustrates how AI reduces material waste, enhances precision, and strengthens competitiveness. By closing resource loops, AI supports sustainable production models, reducing environmental impacts while creating long-term economic value.
Predicting the Unpredictable: AI for Climate Risk and Disaster Resilience
India’s vulnerability to climate extremes demands advanced risk modeling, an area where AI is proving indispensable. Machine learning algorithms analyze meteorological data, satellite imagery, and historical events to generate predictive models for floods, droughts, and cyclones. AI-powered early warning systems improve response times, safeguarding infrastructure and lives. In agriculture, climate risk models guide crop and irrigation choices, while urban planners use AI-based digital twins to design resilient infrastructure. Recently, in December 2024, climate-tech startup Resilience AI has secured USD 1 Million in seed funding, with the round led by Kalaari Capital’s CXXO initiative. The investment will be used to strengthen its Resilience360 platform, which supports businesses and governments in managing climate risks and improving preparedness for extreme weather events. By integrating AI into disaster frameworks, India strengthens preparedness, minimizes losses, and enhances resilience against escalating climate volatility.
Trust in Sustainability: Blockchain for Green Supply Chains and Carbon Markets
Blockchain is increasingly being adopted in India to enhance transparency and credibility across sustainability initiatives. In supply chains, it verifies compliance with environmental and ethical standards by recording transactions in secure, tamper-proof ledgers. Renewable energy producers are deploying blockchain platforms to certify green energy credits and carbon offsets, strengthening trust in trading systems. Apart from this, industries such as textiles and food are also leveraging it to validate sustainable sourcing, reinforcing global buyer confidence. One of the significant developments in the sector occurred in January 2025, when KPMG in India announced a strategic alliance with The Hashgraph Group AG to accelerate enterprise blockchain adoption using Hedera’s energy-efficient infrastructure. This collaboration supports use cases including sustainability tracking, supply chain management, and digital product passports, enabling businesses to align with ESG goals and expand access to green finance.
The competitive landscape of the market is characterized by rapid innovations, strategic partnerships, and increasing investments in AI-driven solutions. Companies are focusing on developing scalable platforms that enhance renewable energy integration, optimize waste management, and streamline water conservation systems. Many firms are leveraging advanced analytics, IoT, and machine learning to deliver precision insights across energy grids, recycling systems, and agricultural ecosystems. The market is also witnessing strong collaborations between technology providers, research institutions, and government agencies to accelerate the deployment of AI-powered solutions at scale. With growing regulatory emphasis on decarbonization and ESG compliance, organizations are prioritizing digital sustainability frameworks that offer transparency and measurable impact. Also, venture capital and institutional investors are actively supporting startups that bring disruptive AI innovations to the sector.
Recent Developments:
The market is poised for robust growth. As per industry reports, green technology and sustainability market size in India is expected to reach USD 8,603.2 Million by 2033, exhibiting a growth rate (CAGR) of 27.36% during 2025-2033, driven by AI-led innovation, policy support, and rising corporate sustainability commitments. Some of the key growth factors include:
As India’s green technology and sustainability market evolves through AI-driven innovations, IMARC Group provides stakeholders, policymakers, and businesses with actionable intelligence and forward-looking strategies.
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