INDIA’S ELECTRIFICATION RATE COULD REACH 32% BY 2035, IEA SAYS

India’s electrification rate could rise from around 19% currently to approximately 32% by 2035, according to an International Energy Agency assessment, with transport identified as an important driver of the change. Greater electrification of vehicles and other energy-consuming activities could reduce India’s dependence on imported fossil fuels while increasing demand for electricity generation and grid infrastructure. The shift has important implications for automobile manufacturers, battery companies, power producers, charging networks and equipment suppliers. Electric mobility is already expanding across two-wheelers, three-wheelers, buses and passenger vehicles, while industrial and commercial applications are also becoming increasingly electrified. Higher electricity demand will require corresponding investments in generation, transmission, distribution and storage. The change could also reshape India’s fuel-import bill over time because electricity generated domestically can replace some consumption of imported petrol and diesel. However, the benefits will depend on the composition of India’s power generation and the pace at which renewable and other low-carbon sources expand. For businesses, rising electrification creates opportunities across several connected industries rather than only in vehicle manufacturing. Companies supplying batteries, power electronics, charging equipment, grid systems and energy-management software could all benefit from the transition. The IEA outlook therefore points to a structural change in India’s energy economy that could become increasingly visible in corporate investment decisions over the coming decade.