Ficci director general: India must act now to create a resilient energy ecosystem for the future

India’s energy story is inseparable from its growth trajectory. As one of the world’s fastest-growing major economies, its energy demand is rising rapidly. India is now the world’s third-largest energy consumer, and peak electricity demand is projected to reach 345–365 gigawatts (GW) by 2030.

With rising industrialization, urbanization and incomes, energy demand is expected to remain high over the coming decades. Energy availability directly influences production costs, inflation, currency stability and overall market sentiment, making it a critical aspect of economic resilience.Yet, India’s current energy mix underscores a structural vulnerability. Fossil fuels continue to dominate, with oil and gas forming a significant share of the energy basket.

Despite progress in renewables, oil remains critical for transport and industry, while gas is essential for power, fertilizers and manufacturing. This dependence is more concerning when viewed alongside India’s import profile: almost 90% of crude oil and more than 50% of natural gas requirements are met through imports. Such reliance exposes the economy to global price shocks, geopolitical disruptions and other supply chain uncertainties.

India has made a decisive push towards diversifying its energy mix. The country has already reached 250GW of non-fossil fuel power capacity and is targeting 500GW by 2030. We achieved 50% renewable capacity as a proportion our total power generation five years ahead of this target’s 2030 deadline, driven by policy support measures, solar park development, wind expansion and green corridor investments.