Renewable energy contributed 7% of India's electricity generation in 2006, with about 9.1 GW of capacity. Nearly two-thirds of this contribution was from wind sources, 1.8 GW from small hydro, and 1 GW from biomass derived energy. The total generation potential from renewables is estimated at 172 GW. Meanwhile, the Indian government has committed to generate 10% of power from renewables by 2012, the end of the next planning cycle. This paper is a review of the state of the wind energy sector, and points to the role of policy and the CDM in future growth.