India plans to use electrification to reduce fuel imports and improve energy security
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India plans to increase its reliance on electricity to reduce its dependence on imported fuels and improve national energy security.
A report by NITI Aayog shows that India aims to increase the share of electricity in its final energy consumption from 21 per cent in 2025 to 60 per cent by 2070. This shift could lower the country's fuel import bill from roughly 4 per cent of its gross domestic product to 0.2 per cent.
While India became the world's fourth-largest producer of clean electricity in 2025, the government and industry experts say the method of electrification will determine the success of these goals. Factories currently use about one quarter of their energy from electricity, while most of their power comes from burning coal, oil, and gas on site. The author suggests that adopting heat pumps could help decarbonize industrial heat in sectors like dairies, textiles, and pharmaceuticals.
These machines move heat from air or water to where it is needed, providing between 2.5 to 4 units of heat for every unit of electricity in Indian conditions. This is more efficient than electric boilers, which provide at most one unit of heat per unit of electricity. However, high costs and a lack of standardized information currently limit the use of these technologies. Nearly 90 per cent of heat pumps sold in India are currently imported from China.
The author argues that the Bureau of Energy Efficiency should establish Indian standards and a star labeling system to help buyers compare products. Such measures would help ensure that factories and households receive efficient products while building a domestic manufacturing base for heat pumps and induction cooktops.
