Data Centres and manufacturing may drive Rs 50 trillion power investment, but risks hitting a transmission wall

India has become the world’s fastest-growing major electricity market, with demand being driven by higher usage in manufacturing sector as well as data centres. Equirus estimates India will require nearly Rs 50 trillion of investments by FY32 across power generation, renewable energy, storage and transmission infrastructure to meet the country’s rising needs.

Electricity demand has grown at 7.3% annually on a compounded basis between FY21 – FY25. Going forward, IEA expects India’s electricity demand to grow 6.4% annually through 2030, ahead of China, the US and Europe.