India’s power sector is on the cusp of a major investment boom, with the sector expected to draw up to $450 billion (around ₹45 lakh crore) in capital by 2032. This projection highlights the vast opportunities emerging across electricity generation, transmission, distribution and energy storage as the country scales up its energy infrastructure.
Union Power Minister Manohar Lal Khattar outlined this investment potential while speaking at the curtain-raiser event for the Bharat Electricity Summit 2026, scheduled to be held from March 19 to 22 in New Delhi. According to the minister, India has successfully transitioned from a period of power shortages to a power-surplus regime, enabling authorities to plan for long-term capacity expansion, enhanced reliability, grid resilience and deeper integration of clean energy.
Under the investment outlook presented, the electricity generation segment alone could attract roughly $346 billion over the next decade. This includes funding for expanding renewable energy capacity, modernising conventional plants and exploring emerging technologies. An additional $68 billion is anticipated to flow into transmission and distribution infrastructure, reflecting the need to strengthen grid networks and support the evacuation of power from resource-rich regions. Around $35 billion has been identified for energy storage systems, including battery energy storage and pumped storage projects, which are critical for integrating variable renewable sources and enhancing grid stability.
Officials also pointed out that India’s installed power generation capacity has more than doubled over the past decade, growing from around 249 GW in 2014 to over 510 GW by late 2025. The nation recorded a peak demand of 250 GW in 2024, underscoring the increasing robustness of its power infrastructure. Importantly, the share of non-fossil fuel sources in the energy mix has surpassed 50 percent, driven by rapid solar and wind capacity additions.
The projected investment surge reflects not only expanding demand but also India’s push toward cleaner energy, grid modernisation and storage solutions. With the power sector poised to play a central role in supporting economic growth and energy security, policymakers are focusing on reforms, technological adoption and investor engagement to sustain this trajectory in the coming decade.
