India’s Future Insight Series: Modern India’s Coal2Clean Journey
By Trisha Nagpal
Written By:
Jonathan Ursell, Director
India’s rapid industrialisation, driven by manufacturing growth, urbanisation, and infrastructure expansion, significantly increased its energy demand. And yet…, in less than a decade, its focus on clean energy sources has transformed a power-deficit nation into a power-surplus one.
To meet rising energy demand, the country aggressively pursued the spectrum of renewable energy solutions, turning to wind, solar, and bioenergy as key contributors to its power supply. Massive solar farms in Rajasthan or Gujarat, extensive wind energy capacity across Tamil Nadu and Karnataka, or hydroelectric and biomass investments showcase India’s energy source diversification.
Policies Driving Growth
Fossil and clean presently continue to co-exist as India balances its need for industrial and economic growth. However, the Indian Government’s aims to reduce fossil fuel dependence, improve energy security, and create a sustainable energy landscape.
India wants to play a leading role as a hub supporting global energy transition aims. Strategic key initiatives include establishing a clean energy technologies Centre of Excellence, promoting India as a global hub for wind, solar, or green hydrogen production, championing the development and use of electric vehicles and related technologies, marketing campaigns to increase solar power use across homes and businesses and expanding the production of bioenergy from various waste materials.
Good News For UK Business?
UKIBC proprietary research suggest clean energy contributed less than 5% of GDP growth in 2023. However, an anticipated rise to 7-8% of GDP by 2027 marks a strategic shift toward sustainable growth. The country’s EV market is remarkably forecasted to grow from $3 billion in 2022 to a staggering $100 billion by 2029, at an impressive CAGR of 65%. It evidences India’s conscious efforts to diversify its energy mix, reducing reliance on fossil fuels and embracing renewable alternatives.
This increase also highlights the economic and policy impact of government initiatives, including subsidies for electric vehicles and investments in renewable energy infrastructure, showcasing the success of India’s green policies. It further provides a benchmark for future progress, tracking the country’s journey towards solar power expansion, electric vehicle adoption, and green hydrogen development.
For international businesses, this growth signals global investment opportunities in renewable technologies and sustainable infrastructure. It underscores India’s economic resilience, demonstrating its ability to adapt to global environmental challenges and reduce vulnerability to oil price fluctuations.
The rising GDP contribution from clean energy also reflects an emerging green economy, driving growth in sectors like manufacturing, R&D, and green finance. This expansion will highlight job creation and skill development, spurring demand for new training programs and skilled labor in renewable energy production and EV manufacturing.
Additionally, this trend accelerates technological innovation, encouraging both domestic and international companies to invest in cutting-edge renewable technologies and energy storage solutions. The expansion of clean energy will boost rural and decentralized energy access, improving electrification and economic empowerment in remote areas.
India’s progress aligns with its commitment to global climate goals, reinforcing its role as a responsible player in climate agreements like the Paris Agreement. The policy stability and regulatory support for clean energy ensure long-term investor confidence, paving the way for future mobility trends and a stronger EV market.
Time To Act.
India’s clean energy sector is at a pivotal moment, with government policies driving substantial economic growth and opening up new market opportunities. For UK businesses ready to explore this expanding landscape, now is the perfect time to engage.
If you wish to find out more, book a consultation with UKIBC’s Clean Energy Champion, Jon Ursell, to learn how your business can capitalise on India’s clean energy boom. Let’s work together to support India’s green transition while securing growth opportunities for your business.
If you’re interested in finding our more UKIBC is launching our new series of webinars “India`s Future Insight” in which we deep dive into key sectors in India to showcase opportunities and trends. Join us for our first session in which we delve into the critical facets of the infrastructure sector in India. The infrastructure capital expenditure outlay for FY 2024–25 has climbed to US$ 133.86 billion, surpassing the US$ 100 billion threshold for the second time in a row. This will have a positive impact on all sectors in India with new highways, railways, airports, seaports and of course clean energy. Topic: Revolutionising Infrastructure: Trends and Innovations Date: 8th October, 2024 Time: 10:00 am- 11:00 am BST/ 2:30 pm- 3:30 pm IST Registration Link: https://lnkd.in/e5QN5T_Z
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