India, Jan 24 : India is electrifying at a faster pace than China did at similar stages of economic development, according to a recent report by the think tank Ember. Despite still relying on fossil fuels, India uses less coal and oil per capita than China did when its GDP was equivalent, highlighting a growing opportunity for clean electricity to drive development in emerging economies.
Faster Green Growth at Lower Costs
The report notes that India’s access to affordable solar panels, batteries, and electric vehicles has enabled it to leapfrog fossil-fuel dependence more efficiently than China. Modular technologies, where production experience improves efficiency, have lowered costs significantly, allowing India to expand electrification without repeating China’s high emissions trajectory.
Economic Sense Drives Electrification
India’s shift toward clean electricity is motivated as much by economics as climate concerns. Importing over 40% of its primary energy, India spends roughly $150 billion annually on fossil fuels. Reducing this dependency is a key driver for electrification, which promises both energy independence and economic growth.
Challenges in Domestic Manufacturing
While electrification accelerates, India faces hurdles due to China’s dominance in global electrotech manufacturing. Equipment shortages recently forced Reliance Industries Ltd. to pause plans for domestic lithium-ion battery cell production. However, this bottleneck also incentivizes India to invest in local manufacturing, potentially accelerating its path toward becoming an “electrostate.”
Cleaner Transportation and Lower Oil Demand
In 2024, electric vehicles accounted for 5% of all new car sales in India. Road-transport oil consumption per capita remains 60% below China’s level at a similar stage, indicating India may avoid the high oil demand peaks China experienced.
A Path for Emerging Economies
Ember analysts suggest that India’s experience could serve as a model for less developed countries, where falling costs of solar, EVs, and batteries allow for rapid clean electrification. By harnessing these technologies, nations with limited fossil fuel reserves can achieve energy security while promoting sustainable growth.