Investment dynamics: Balancing opportunities and risks in India’s energy transition

India has witnessed remarkable growth in the solar sector over the last decade. According to the Ministry of New and Renewable Energy, the overall installed capacity has increased from 2.82 GW in March 2014 to 87.2 GW in July 2024.This can be attributed to aggressive government targets, supportive policy frameworks, decreasing technology costs, and increasing awareness about climate change. While the sector is attracting significant investments from foreign and domestic sources, it also has inherent risks. Contrasting views prevail regarding the future of the solar market, and several factors suggest both opportunities and risks.