For decades, India’s power sector focused on one challenge generating enough electricity. Today, the challenge is far bigger: building the infrastructure needed for an economy that is becoming increasingly dependent on electricity.
India’s growth is driving massive power demand. Air-conditioners, electric vehicles, data centers, metro systems, green hydrogen projects and new industries are all increasing the need for reliable electricity. At the same time, recurring heatwaves and rising cooling demand are pushing peak electricity consumption to record levels year after year.
But behind every unit of electricity lies a much larger ecosystem transformers, substations, cables, batteries, power electronics and smart grid systems. These components may become the true backbone of India’s energy transition.
Understanding India’s Energy Landscape
A recent report by McKinsey & Company estimates that India’s electrical equipment industry could reach $235 billion in domestic production by 2035, with exports crossing $60 billion. However, without rapid manufacturing expansion, India could face a production gap of over $130 billion and heavy import dependence.
India’s renewable energy ambitions also depend on this hidden infrastructure. Solar and wind energy cannot scale effectively without transmission networks, storage systems and advanced electrical equipment. Yet India still relies heavily on imports in areas like batteries, solar components and power electronics, creating long-term strategic risks.
Countries like China, Europe and the United States are already strengthening clean energy manufacturing and supply chains. India now faces a critical opportunity to build its own industrial capabilities.
The good news is that Indian manufacturers are becoming increasingly competitive in transformers and renewable energy equipment. But achieving global scale will require stronger R&D, localization of components, skilled labour, faster approvals and a long-term industrial strategy.
India’s next power revolution will not be decided only by how much electricity it generates. It will depend on whether the country can build the systems and technologies needed to power an increasingly electrified economy.