Power - #SectorUpdates
India’s power sector is one of the most diversified in the world playing crucial role for the economic growth and welfare of nations. India is the third-largest producer and consumer of electricity worldwide. India is the only country among the G20 nations that is on track to achieve the targets under the Paris Agreement. GDP contribution of this sector is expected to grow at a rate of 7.5% to 8.5% between FY22 to FY23 as per market estimates and thus India is aspiring to become a $10 trillion economy by 2030, achieving sustainable growth in the power sector. According to market reports, India will need to build 817 GW of generation capacity by 2030 meeting the CoP26 commitment of at least 500 GW to be produced through non-fossil fuel sources. The commitment aims at reduction of carbon emission in the environment. Notably, FDI inflow in the power sector reached $15.89 billion during April 2000-March 2022, accounting for 2.77% of the total FDI inflow in India. Under the Union Budget 2022-23, the Government of India announced the issuance of sovereign green bonds, as well as conferring infrastructure status to energy storage systems, including grid-scale battery systems. Moreover $2.57 billion is allocated on the part of Government for a PLI scheme to boost manufacturing of the sector.