India is making bold moves in ‘new energy’ and decarbonization and our recent trip reinforced our reasons to remain bullish.
- India’s ambitious target for renewable energy may spur growth in a range of business sectors as they ramp up to meet increasing demand.
- As India’s population grows and becomes wealthier, the need for a more circular economy has never been greater, creating demand for more innovative waste management.
- Government policies seemed to have spurred the adoption of electric vehicles, helping reduce air pollution.
India has the second largest population in the world with more than 1.4 billion people who are getting richer and consuming in ways that call for a rethink of the energy system and highlight the need to respect and maintain the environment.1 India’s government has issued bold targets for renewable energy aiming to install 280 GW of solar power capacity by 2030. This is a tall order. Today, the country has about 64 GW of solar power capacity.2 India also has a 2030 target of 500 GW of power from non-fossil sources, meaning there is work to be done in both the public and private sectors.3 Our recent trip reinforced the reasons we remain bullish in India and gave us insight into where the opportunities may lie.
With companies setting up shops in India in the age of ‘China+1’, on top of climate pledges made by corporations, renewable energy operators and independent power producers seem to have room to grow. Along with the need for equipment, there are government incentives for production through both tariff and non-tariff barriers. To ensure domestic energy security, India has scaled up efforts on home-grown solar, wind, battery, and biofuels throughout the country.
Manufacturing: Energy Security for the Longer Term
Energy access and availability are linked to economic prosperity. We think India is poised to benefit from companies’ diversifying and ‘greening’ their energy supply. In the years ahead, we see a wide range of business sectors potentially gaining from this, including renewables for domestic use and export, and decarbonization of heavy industry such as steel and cement. We visited one of the largest solar module manufacturers in the country which is ramping up full-scale production and positioned to potentially benefit from export-led growth.