India’s Solar Sector Draws Rs. 20,641 Cr FDI as Energy FDI Sees Sharp Slowdown – Saur Energy

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According to data shared by the Department for Promotion of Industry and Internal Trade (DPIIT), total foreign direct investment (FDI) stood at ₹4,97,675.58 crore. Foreign direct investment into India’s solar energy sector reached ₹20,641.08 crore in 2025, equivalent to $2,377.82 million, accounting for a 4.16% share.
Moreover, taking a holistic view of India’s non-conventional energy sector reveals that FDI inflows in this segment rose from ₹31,188 crore in FY2023–24 to ₹33,797 crore in FY2024–25, marking a YoY growth of 8.37%.
However, despite being among the top 10 sectors in attracting foreign direct investment (FDI), inflows have declined to ₹22,020 crore, reflecting a sharp 34.84% drop compared to the previous year. Cumulatively, energy inflows have reached ₹1,81,978 crore. readers will be aware that the year saw a number of listings by solar firms to access domestic public markets, even as bank funding availability has also improved significantly. This has reduced the urgency to seek foreign funding in the sector considerably, other than in the developers category to an extent. 
In comparison, the broader non-conventional energy segment recorded FDI inflows of ₹6,267.20 crore ($723.20 million), while the power sector attracted ₹3,560.44 crore ($408.91 million). These investments are part of the total investment of ₹26,908.28 crore made in the non-conventional energy segment.
By contrast, traditional energy segments saw significantly lower inflows. Mining services received ₹46.50 crore ($5.33 million). Within the petroleum and natural gas sector, oil refinery investments stood at ₹8.60 crore ($0.99 million), while oil exploration attracted ₹1,006.72 crore ($115.17 million).
Compared to these segments, investment in petroleum and natural gas oil refinery was ₹8.60 crore, and in oil exploration it was ₹1,006.72 crore, taking the total investment in this segment to ₹2,527.51 crore.
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