Page 29 - Hitachi IR 2025

manufacturing PMI, driven by new
business gains and robust demand.
In the infrastructure sector, the
government is implementing
schemes, policies, financial
incentives and regulatory measure
to boost renewable energy and
green investments. Some of the
power sector-related schemes
are – the PM - Surya Ghar: Muft
Bijli Yojana, National Bioenergy
Programme, National Green
Hydrogen Mission and PM-KUSUM.
India is also focusing significantly
on the growth of Transmission
segment because of the growing
power demand and increase
in renewable and conventional
installed capacities. Renewable
energy’s installed capacity increased
by 15.80% YoY (by March 2025) as
a result of capacity addition in solar
and wind power.
India’s economic prospects for
FY 2025-26 are balanced, and it is
projected to maintain its status as
the fastest-growing major economy,
supported by sustained growth
momentum and strategic fiscal
measures. Increased geopolitical
tensions and trade uncertainties and
possible commodity price shocks
are a few of the growth headwinds.
Growth is projected to be higher
with the order books of private
capital goods sector translating
into sustained investments,
higher consumer confidence,
and an increase in corporate
wages. A stable macro‑economic
environment, rebound in agricultural
production and easing of food
inflation will provide a fillip to rural
demand and near-term growth.
Moving ahead, to establish its
medium-term growth potential,
improving global competitiveness
through structural reforms and
deregulation is a key imperative.
Rising demand in power sector
India is the third-largest consumer
of energy in the world. With a
population of approximately
1.40 billion and being the world’s
fastest major growing economy,
India’s energy demand is growing
rapidly. India’s electricity demand
increased by a CAGR of about
5% during the period 2017-22,
while during 2022-24, demand
increased by a CAGR of 9.46%.
Advancements in energy
generation, transmission and
distribution led to FY 2024-25
becoming a landmark year in India’s
power sector. In FY 2024-25, India
successfully met its all-time‑high
power demand of 250 GW and
reduced energy shortage to a
meagre 0.10% at a national level.
Mid-term review of the 20th Electric
Power Survey has projected a peak
demand of 277 GW in FY 2025-26
by optimally using the existing and
under-construction capacities.
Demand increase is led by rapid
industry expansion, development
of agriculture, enhanced electricity
access and increased use of air
conditioning and appliances
in residential and commercial
sectors. The government is
working on developing an efficient,
coordinated, economical and
robust electricity system to ensure
smooth flow of electricity from
generating stations to load centers.
It also aims at achieving optimum
utilization of resources to provide
reliable, affordable, uninterrupted
and quality power for all.
India’s transmission segment
has undergone a significant
transformation over the years,
transitioning from a fragmented
network to a well-integrated and
inter-connected grid. The segment
has taken huge strides in expanding
the physical infrastructure of the
grid and consolidating it into one
of the largest synchronous grids
globally. Power transmission is
the key link in the overall power
sector value chain, facilitating
evacuation of power from power-
generating units, which are spread
across the country and supply
to various distribution entities,
which in turn supply power to the
end‑consumers.
The network is being continuously
strengthened and transformed
with the addition of transmission
lines and inter‑regional capacity to
expand the physical infrastructure
of the grid. The nation’s power
transmission segment is on the cusp
of a massive expansion, with an
estimated ` 9.10‑9.20 Lakh Crores
investment to double India’s power
capacity to 900 GW and to ramp up
transmission infrastructure by 2032.
India’s transmission capacity, which
currently stands at 2,530 GVA, is
set for a five-fold increase over the
next few years.
India made significant strides in its
renewable energy, with its ambitious
target of achieving 500 GW
non‑fossil energy capacity by 2030.
As of March 2025, renewable
energy’s installed capacity stands at
220.10 GW, in comparison 190.60
GW capacity recorded at the end
of March 2024, representing its
determination to achieve clean
energy targets. The addition of
29.50 GW capacity in FY 2024‑25
vis-à-vis 18.60 GW added in
FY 2023-24 reflected a 15.50%
renewable capacity increase in
FY 2024-25. Cumulative installed
capacity of solar power increased
29.10% from 81.80 GW in March
2024 to 105.60 GW in March
2025. On the other hand, with 4.10
GW installed capacity added in wind
power in FY 2024-25, India’s total
wind power capacity increased by
8.90% at 50 GW.
As part of its broader strategy to
foster energy transition and security,
the government is working on
reforming the power sector with
new rules and introducing new
initiatives aimed at strengthening
and empowering India’s power
sector, facilitating ease of doing
business for energy-intensive
industries. The comprehensive
nature of these reforms comprises
the potential to make the power
sector competitive, efficient and
Integrated Annual Report 2024-25
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