The demand of electrical energy is increasing which are causing increase in population due to extensive use of fossil fuel. This review paper presents energy potential in India and estimated renewable potential in India. It also presents its impacts, awareness and government achievements. The particulars of India’s contribution in renewable energy and challenges faced by government. It includes government policies, action and program for encouraging Renewable Energy. All analysis done in this paper will be valuable for researchers and invested in coming future. The primary objective for installing renewable energy in India to reduce climate changes and pollution and to advance economic development. The main purpose of this review is to show the present scenario of renewable energy in India and how India is contributing to fulfil the demand of energy consumption in India. This paper reviewed challenges faced in the development of renewable energy and their solutions.