India generated $110 billion in green revenues in 2025, making it one of the fastest-growing green economies in Asia despite its relatively smaller size, according to LSEG’s Investing in the Green Economy 2026 report.
The report by the London Stock Exchange Group-owned financial markets data and infrastructure provider said that India’s green revenues grew at a five-year compound annual growth rate of 20 percent, outpacing Asia’s overall green revenue growth of 12 percent and the global market’s 10 percent CAGR over the same period.
While India remains a smaller green economy compared with regional leaders such as China and Japan, the report shows that the country is building strong positions in select green sectors. India accounted for 87 percent of Asia’s green revenues in biogas energy equipment and 75 percent in advanced irrigation systems and devices, according to LSEG.
The findings point to India’s growing presence in green economy segments linked to agriculture, rural infrastructure, waste-to-energy and decentralised energy systems, even as the country’s broader green revenue base remains modest in Asia.
Asia has emerged as the world’s largest green-revenue region, with Asian companies accounting for 47 percent of global green revenues in 2025, led by China, Japan, Hong Kong and South Korea. The region plays a key role in green sectors such as energy equipment, transport equipment, waste and pollution control, electric vehicle batteries and railway infrastructure.
Within Asia, China remains the dominant green economy, accounting for 41 percent of the region’s green revenues, followed by Japan at 28 percent, Hong Kong at 10 percent, South Korea at 6 percent and Taiwan at 5 percent. India accounted for around 4 percent of Asia’s green revenues, according to the report.
The report also noted that Asia is the largest destination for clean-energy investment. China deployed around $625 billion across renewables, energy storage, nuclear and energy efficiency, while India followed with around $100 billion in clean-energy investment, accounting for 83 percent of its power-sector capital allocation.
However, the report also flagged the challenge of balancing clean-energy growth with energy security. Asia remains heavily dependent on imported fossil fuels, particularly from the Middle East, and continues to drive global coal demand, led by China, followed by India and Southeast Asia.
For India, the report’s findings underline a dual story: The country is still a small player in Asia’s listed green revenue pool, but it is growing faster than most regional peers and has already built leadership in certain niche segments such as biogas energy equipment and advanced irrigation systems.
The report defines green revenues as revenues generated by listed companies from products and services that contribute to the green economy. LSEG said its green revenue data is as of April 2026, while revenue data is as of December 2025.
