Hydropower is a valuable renewable energy resource in India, which can help in climate change mitigation and meet the increasing energy demands. However, the crucial role of climate change on hydropower production in India remains unexplored. Here using the observations and model simulations, we show that seven large hydropower projects experienced a significant (p-value < 0.05) warming and a decline in precipitation and streamflow during the observed period of 1951–2007. However, all the hydropower projects are projected to experience a warmer and wetter climate in the future. Multimodel ensemble mean annual average temperature (precipitation) is projected to rise up to 6.3 ± 1.6 °C (18 ± 14.6%) in the catchments upstream of the other reservoirs by the end of the 21st century under representative concentration pathway (RCP) 8.5. Due to the projected increase in precipitation, mean annual streamflow (up to +45%) and hydropower (up to +25%) production are projected to rise under the future climate. However, significant warming (6.25 ± 1.62 °C) is projected to result in a decline in streamflow and hydropower production in May- June for snow-dominated Nathpa Jhakri and Bhakra Nangal hydropower projects. Our results provide insights into the development and planning of hydropower projects in India under the current projected future climate.