As India Energy Week 2026 (IEW 2026) takes place in Goa, it is clear that the country is not simply looking to change its energy matrix, but to ensure that this change does not compromise its rapid rise as a manufacturing powerhouse. The Wood Mackenzie analysis that I have reviewed in depth underlines that success will depend on how they manage the trilemma between security, equity and sustainability.
The imperative of supply and safety, according to IEW 2026
Certainly, energy security is the bedrock of any national plan in a country that imports most of its fossil fuels. With GDP growth projected to exceed 6% through 2035, the demand for energy will be massive. I believe that supply chain integration and the creation of dedicated oil and gas infrastructure will remain critical priorities. Likewise, the competitiveness of Indian manufacturing is intrinsically linked to a stable supply that cannot rely solely on intermittent sources in the short term.
With regard to emissions, the next decade will define whether India succeeds in establishing itself as a low-carbon leader or whether it becomes locked into polluting infrastructure. Projections indicate a 25% increase in carbon dioxide emissions due to urban and building expansion. In my analysis, the transition to mandatory carbon pricing and adoption of clean technologies in heavy industry are mandatory steps to divert this trajectory. Renewable energy is part of the solution, but profound restructuring of industrial energy use is where this climate battle will be won or lost.
With respect to investment, I estimate that a significant increase in capital deployment is required to modernize the electricity grid and storage systems. To achieve neutrality by 2070, investment must exceed the $1.5 trillion initially projected. Mobilization of these funds must be efficient to maintain system affordability. For this reason, the development of sectors such as low-carbon hydrogen and carbon capture and carbon capture and storage (CCUS) becomes critical for sectors that are difficult to reduce emissions.
Finally, I note a worrying gap between government targets and actual production capacity. The supply of green hydrogen is far from reaching the 2030 targets due to the scarcity of mature projects. Similar is the case with electric vehicles, where reliance on imports for batteries is holding back mass market penetration. To reverse this, India must strengthen its strategic partnerships for lithium procurement and accelerate policy transparency to attract global manufacturers to produce locally.
Source and photo: Wood Mackenzie