India’s power sector to see Rs 40 trillion investment by 2035
India’s power sector is projected to receive over Rs 40 trillion in investments in the next decade, according to a report by Motilal Oswal. Of this, around Rs 34 trillion will be directed towards capital expenditure in areas like power generation, transmission, and smart metering, which will account for 86%, 10%, and 4% of the total, respectively.
This investment surge is fueled by rising power demand, driven by India’s growing GDP, technological advancements, and a transition to cleaner energy. The report predicts a compound annual growth rate (CAGR) of over 7% in power consumption, with electric vehicles (EVs) and data centres becoming significant contributors. By 2035, these sectors could make up one-third of the total power demand growth, similar to China’s trajectory in the early 2000s.