Prime Minister Narendra Modi asserts that with India’s aggressive energy sector expansion and comprehensive reforms, now is the optimal time for investment.
A slew of reforms and a commitment to make the country a leading manufacturing hub make India’s energy sector an attractive investment proposition, Prime Minister Narendra Modi has said.
In a video address at the third India Energy Week (IEW) in New Delhi on Tuesday, Modi highlighted that India increased its solar energy generation by 32 times, making it the third-largest globally. This milestone enabled India to become the first G20 member to meet the Paris Agreement goals ahead of schedule.
“One example of how Bharat [India] achieves its goals ahead of time is ethanol blending. Bharat is currently blending 19 per cent ethanol, leading to foreign exchange savings, substantial revenue for farmers, and a significant reduction in CO2 emissions,” said Modi.
India is on track to achieve a 20 per cent ethanol mandate before October 2025. Its biofuels industry is poised for rapid growth with a sustainable feedstock capacity of 500 million metric tons.
“Under India’s G20 presidency, the Global Biofuels Alliance was established and continues to expand, with 28 nations and 12 international organisations joining. This initiative is transforming waste into wealth and establishing Centres of Excellence.”
Modi discussed reforms in hydrocarbon exploration, stating that significant discoveries and extensive infrastructure creation have expanded gas infrastructure, creating numerous investment opportunities.
“This has increased the share of natural gas in our energy mix. Bharat is currently the fourth-largest refining hub and is working to increase its refining capacity by 20 per cent.”
Committed to reforms
He informed the audience about the hydrocarbon potential of the country’s sedimentary basins and government measures such as the Open Acreage Licensing Policy (OALP), the opening of the Exclusive Economic Zone, and the establishment of a single-window clearance system to support growth.
“Following amendments to the Oilfields Regulation & Development Act, stakeholders now benefit from policy stability, extended leases, and improved financial terms. These reforms by the government will simplify the exploration and production of oil and gas resources in marine areas, as well as the maintenance of strategic petroleum reserves.”
Modi emphasised the focus on Make in India, strengthening local supply chains, and the Production Linked Incentive (PLI) schemes that have opened numerous opportunities for manufacturing high-efficiency solar PV modules.
With the country moving toward electric mobility, immense opportunities are emerging in the battery and storage segments. The government has announced several measures to support green energy in the recently tabled Union Budget 2025-26.
“The government has removed basic customs duties on various components related to EV and mobile phone battery manufacturing, including cobalt powder, lithium-ion battery waste, lead, and zinc, among other critical minerals. The National Critical Minerals Mission will play a key role in establishing a robust supply chain in Bharat.”
India is also promoting the development of a non-lithium battery ecosystem while opening the nuclear energy sector to private players.
Modi stated that the country is actively working to strengthen the energy sector through people’s participation in heavily subsidised residential rooftop solar schemes like PM Surya Ghar Muft Bijli Yojana.
-Manish Pant