Power Sector Growth - An Infographic

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 476 GW as of June 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% 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.​

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).

*India’s thermal power sector is set to attract Rs. 2,30,000 crore (US$ 26.71 billion) in investments by 2027-28, with private players contributing around one-third, supporting the addition of 80 GW capacity by 2031-32 and ensuring stable base load energy alongside renewable growth.

Last updated: Oct, 2025

Top Power Producing States in India

  • Gujarat
  • Maharashtra
  • Tamil Nadu
  • Rajasthan
  • Karnataka
  • Uttar Pradesh
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