Clean and Competitive: How Renewables Can Unlock India's $10 Trillion Potential

India stands at a crossroads. Its economy is roaring, poised to reach an ambitious $10 trillion mark by 2035, according to the Centre for Economics and Business Research. Even at the ongoing World Economic Forum in Davos, where global elites have gathered, India is making news.

At the high table of capitalism, India continues to make all the right notes, with India-themed pavilions in the majestic Alps and the WEF President, Borge Brende, predicting that in the coming decade, we could be speaking of a 10 trillion-dollar Indian economy.

While India has embarked on its 10 trillion-dollar journey with a strong vision and on a strong footing, a lot still needs to be done. India will need to grow at an average rate of 9 per cent to reach $10 trillion by 2030, assuming a stable exchange rate.

For this to happen, India will need to build on its impressive progress so far and the government will need to implement a new set of major reforms that will boost the manufacturing sector, cut red tape, loosen land acquisition rules, and reform civil services. We will also need to take on a comprehensive de-bottlenecking of implementation hurdles to truly unlock our real potential.

Most importantly, the way forward also requires a fundamental choice: embrace the transformative power of renewable energy or risk being suffocated by the fumes of fossil fuel dependence.

Moreover, India’s 10 trillion-dollar ambitions cannot go to party without renewables taking the centre spot at the table. Renewable Energy has become the non-negotiable of sustainable and rapid growth and fortunately, India is uniquely positioned to lead the charge towards a green future where sustainability and growth go hand in hand.

Our energy transition imperatives will be funded by our growth – not just powering the nation but catalysing industries, making Indian manufacturing globally competitive, saving critical foreign exchange, reducing import costs and

increasing energy security. All of which are fundamental to spurring on the economy.

India's Renewable Renaissance:

• Ambitious target: 500 GW of non-fossil fuel capacity by 2030 translates into billions of dollars in investment, not only in green energy generation but also in economic growth and creation of more than 3 million additional long-term domestic jobs.

• Global Green Leadership: India has the potential to become a global leader in wind energy, solar energy, green hydrogen, and other low-carbon technologies. These and other low-carbon technologies could create a market worth up to $80 billion in India by 2030, putting us at the forefront of clean energy innovation and exports.

Transformational impact:

• Climate choices matter: As a country of more than 1.35 billion, India's determination to adapt and mitigate its impacts has the potential to transform not only our future but also the fate of the planet.

• Cost advantage, competitive advantage: Technological advances have tipped the scales in favour of clean energy. Renewables have reached grid parity and often outperform traditional sources in cost. This transition to sustainable energy enables India to compete effectively in global markets and offer products and services at cost-effective prices.

• Catalysing economy, attracting investment: India needs substantial investment to generate 500 GW of renewable energy. It is estimated that around $1.3 trillion will be invested between 2020 and 2030, averaging around $130 billion of investment every year across generation, transmission, distribution and allied sectors, which will have a massive multiplier effect on the overall economy.

• Dependable partner to the world: India is particularly well-placed to become a global leader in manufacturing renewable energy equipment and components, green hydrogen and related molecules. We already boast a thriving wind energy manufacturing ecosystem and are building our solar value chain as well. The Indian economy has always flourished in its manufacturing prowess. Renewables not only make us globally competitive manufacturers overall but also offer a unique sectoral advantage.

Engines of green growth:

• Prime Minister Modi's vision: Renewables are not just an environmental necessity, but the fuel for India's growth engine. As our energy needs rise, wind and solar offer an abundance of clean energy, powering our factories, lighting our homes and driving us to economic prosperity.

• Beyond the carbon footprint: The ESG framework entices and challenges businesses to embrace responsible growth. Sustainability attracts discerning customers, empowers responsible employees and secures investment from climate-conscious stakeholders. Moreover, renewables are no longer a premium fuel; are the most cost-effective option, increasing competitiveness and profitability.

• Towards more inclusive sustainable growth: The world is reeling under the impact of increased imbalance – the widening gulf between the rich and the poor and the sheer explosion of vulnerable populations. Decentralised and utility-scale renewables are the only way for equitable and inclusive growth to ensure that the national growth trickles down right to the bottom of the pyramid.

The choice is clear:

India's $10 trillion dream is within reach, but the path it chooses will define its legacy. By embracing renewables, India can secure a future where economic prosperity and environmental responsibility flourish hand in hand. This is not just a green dream, it is a pragmatic, profitable, and sustainable reality waiting to be built.

Will India lead the charge towards a green tomorrow? The world waits with bated breath as the discussion at Davos today centres around, “Can India Seize Its Moment?”

Girish Tanti is the Vice Chairman, Suzlon Group