Clean energy investment in India could pass the $10 billion (£6.6bn) mark this year, according to analysts.
New research shows the nation has “one of the lowest levelised costs of renewable energy generation in the world”.
Researchers at Bloomberg New Energy Finance (BNEF) expect 2.5GW of new solar capacity and 2.8GW of wind installations in 2015.
Investment in clean energy projects in India rose to $7.9 billion (£5.2bn) last year, helping maintain its position as the seventh largest clean energy investor in the world, they said.
The rise was said to have been driven by the newly elected government in May 2014 which supports clean energy reforms.
Some of the ambitious plans set out by the nation include 100GW of solar installations and more than $100 billion (£66bn) in clean energy in the next five years.
Ashish Sethia, Head of South & Southeast Asia at Bloomberg New Energy Finance said: “Interest in India from domestic and foreign investors has grown in the last six months. Early signs of policy interventions are positive. Specific yearly installation targets would further help investors.”
Earlier this week, the US and India pledged to boost co-operation in tackling climate change and promoting clean energy during President Barack Obama’s visit to the south Asian country.