This study examines the relationship between renewable energy consumption and economic growth in India over the period 2004–2024 using the Autoregressive Distributed Lag (ARDL) model, incorporating key macroeconomic variables including government expenditure, foreign direct investment, population growth, and inflation. The results reveal a stable long-run equilibrium relationship among the variables, indicating that renewable energy consumption has a negative and statistically significant impact on economic growth in the long run, which may be attributed to adjustment costs associated with the transition toward cleaner energy systems, while government expenditure also shows a negative effect and population growth contributes positively to economic performance; in contrast, foreign direct investment and inflation do not exhibit significant long-run effects. Overall, the findings suggest that the relationship between renewable energy and economic growth in India is complex and shaped by structural and policy-related factors, and from an environmental perspective, the expansion of renewable energy can contribute to reducing carbon dioxide (CO₂) emissions and supporting long-term sustainability despite potential short-term economic trade-offs. In addition, the short-run dynamics indicate temporary adjustments toward equilibrium following shocks in the system, reinforcing the importance of gradual policy implementation and supportive institutional frameworks to enhance the effectiveness of renewable energy policies in promoting sustainable economic development in India. Overall, the study highlights the dual role of renewable energy as both an economic and environmental driver within the broader context of sustainable growth strategies.