Sustainability and the Growth of Energy-Efficient Technologies in India in 2025
Introduction
India envisions reaching its goal of becoming Viksit Bharat by 2047. With a net-zero emissions target by 2070, it has already reduced GDP emission intensity by 36% (from 2005 to 2020) and is working towards a 45% reduction goal by 2030. This will help the country achieve economic growth while minimizing environmental impact, ensuring sustainable development for the future. The 2025 Union Budget prioritises energy security, clean energy expansion, and green tech manufacturing. Furthermore, India’s promotion of sustainability policies in startups, MSMEs, and clean tech shows its commitment to COP28 and SDGs. India’s key policy developments for sustainability and energy efficiency include the Energy Conservation Act (2022), PAT scheme, S&L scheme, and the Energy Conservation Building Code, driving decarbonization, energy efficiency, and a sustainable future.
India’s Policy and Regulatory Landscape
The Indian law of Energy Conservation (Amendment) Act which was enacted in 2022 aims at enhancing energy efficiency while ensuring economic growth. It works on the aim of reducing emission intensity by 2030. The Act tackles regulatory, financial, and awareness barriers to promote energy-saving technologies. Next, the Perform, Achieve, and Trade (PAT) Scheme improves cost-effective energy efficiency in energy-intensive industries through tradable energy-saving certificates. Adding on, the PLI Scheme boosts green manufacturing by attracting investments, both domestically and internationally. The Bureau of Energy Efficiency (BEE) enforces Minimum Energy Performance Standards (MEPS) and star ratings for appliances, guiding consumers toward energy-efficient choices. These initiatives collectively drive carbon reduction and sustainable energy use in India.
Growth of Energy-Efficient Technologies
India has been making massive strides in its integration of renewable energy, such as solar and wind energies, mainly due to improvements in storage technologies. Another key development is the real-time optimization of energy usage through smart grids and AI-driven energy management. The EV and green mobility boom has been charged through by the rapid expansion of charging infrastructure and the policy interventions to support the shift. The building of green building codes and IoT-driven energy management has led to building efficiency, and finally, the efforts for industrial energy optimisation have been met through AI/ML-driven demand-side management in heavy industries.
Market Trends, Investment, and Industry Adoption
The World Energy Investment Report 2024 (IEA) projects global energy investment to surpass $3 trillion, with $2 trillion allocated to clean energy. India’s clean energy investment reached $68 billion in 2023, a 40%+ rise from 2016-2020, with nearly 50% directed toward low-emission power, including solar PV. Investment is set to double by 2030 but needs a 20% further rise to meet climate goals.
India’s ESG push is driven by Net Zero 2070, SEBI’s BRSR mandates, and UN SDGs, with rising scrutiny on corporate governance. ESG-aligned investments are expanding, reinforcing sustainability. Meanwhile, energy efficiency in manufacturing minimizes waste and environmental impact, while digital transformation in energy management boosts renewable integration, grid reliability, and cost efficiency, ensuring a sustainable energy transition.
The Way Forward
There are multiple implementation bottlenecks present for the active policies which include infrastructure paucity, financing issues and even the on-ground implementational challenges of the active policies. To combat these issues India needs to adopt measures for promoting public-private partnerships to scale energy-efficient solutions. Incentives for industries to adopt green technologies should be strengthened (tax exemptions and subsidies for specific periods), with increased R&D support and regulatory sandboxes to encourage adoption. Finally, the role of industries, policymakers and consumers needs to be in tandem to accelerate the efforts made towards a sustainable and green future for India. Emerging technologies play an important in bridging gaps and aim towards the adoption of global best practices for India.
References
- https://instituteofsustainabilitystudies.com/insights/lexicon/green-technologies-innovations-opportunities-challenges/
- https://powermin.gov.in/sites/default/files/The_Energy_Conservation_Amendment_Act_2022_0.pdf
- https://www.ibef.org/blogs/esg-investing-in-india-navigating-environmental-social-and-governance-factors-for-sustainable-growth