Power Sector in India

India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 442.85 GW as of April 30, 2024.

Advantage India

Growing
Demand

*India is the third-largest producer and consumer of electricity worldwide, with an installed power capacity of 472.46 GW as of April 30, 2025.

*Growing population along with increasing electrification and per-capita usage will provide further impetus. Power consumption in India in FY23 logged a 9.5% growth to 1,503.65 Billion Units (BU).​

*The all-India peak power demand in FY26 is expected to be 277 GW. In FY25, India consumed 1,694 billion units of electricity, an increase of 33% over FY21, translating into a 5-year CAGR of 7.4%.​

*India's energy demand is expected to grow in the range of 6–6.5 per cent over the next five years, ratings agency ICRA.

Attractive
Opportunities

*According to a report by Motilal Oswal, the Indian power sector presents an investment opportunity worth Rs. 40,00,000 crore (US$ 461.95 billion) over the next decade, driven by rising demand, infrastructure upgrades, and the transition to clean energy. 

*Renewable energy and transmission infrastructure offer attractive prospects, such as Power Grid’s Rs. 2,00,000 crore (US$ 23.10 billion) Capital Expenditure (capex) opportunity.

*India's wind energy sector is making significant strides towards achieving the ambitious target of 100 GW of production by 2030, according to the Indian Wind Turbine Manufacturers Association (IWTMA).

Policy
Support

*India has unveiled a comprehensive plan worth Rs. 9.15 lakh crore (US$ 109.50 billion) to enhance its power infrastructure and meet a projected demand of 458 GW by 2032. This initiative, led by the Ministry of Power under Prime Minister Narendra Modi, aims to strengthen the national power grid and boost energy security.​

*Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in one crore households. The government aims to power one crore homes by FY27. Gujarat leads with 3.51 lakh solar-powered households (18.14%), followed by Maharashtra (1.92 lakh, 22.79%), Uttar Pradesh (75,602, 8.69%), Kerala (65,423, 7.73%), and Rajasthan (26,622, 3.14%).

Higher
Investments

*The nation plans to invest Rs. 9,15,920 crore (US$ 107 billion) by 2032 to develop additional transmission lines, supporting its goal to nearly triple its clean power capacity. 

*India’s power sector is expected to attract investment worth Rs. 17 lakh crore (US$ 205.31 billion) in next five to seven years.

*India’s energy storage sector is poised to attract an investment of Rs. 4,79,000 crore (US$ 56.07 billion) by 2032, as per the India Energy Storage Alliance (IESA).

*Avaada Group announced on April 29, 2025, that it has signed an initial agreement with the Maharashtra government to develop two pumped storage projects in the state, with a combined capacity of 3,600 megawatts (MW). The projects, which include the 2,400 MW Pawana Falyan and the 1,200 MW Sirsala, will require a cumulative investment of Rs. 15,100 crore (US$ 1.77 billion).

Last updated: Aug, 2025

Top Power Producing States in India

  • Gujarat
  • Maharashtra
  • Tamil Nadu
  • Rajasthan
  • Karnataka
  • Uttar Pradesh
Major Electrical Manufacturing Plant in India

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