by Tirath Khaira, Director, Smarten Power Systems
Manufacturing aspirations in India are much more than just being a source of low-cost manufacturing facilities. The country aims at building world-class manufacturing industries that cater both to domestic needs as well as global ones. Such aspirations can’t depend on just plants, incentives, and infrastructure alone. Energy is another thing that is very crucial for competitiveness in industry. Availability and affordability of clean energy are fast becoming one of the most important considerations that affect industrial competitiveness. Not only is a company judged by its output, but how it produces is what matters today. It’s an area where India should take full advantage.
New Foundation
Manufacturing continues to be at the heart of India’s strategy for developing into a 35 trillion-dollar economy by 2047. Policy changes, improved supply chain processes, and sector-specific activities have already made this happen. The Union Budget 2026-27 has continued to support this direction by encouraging investments, innovations, and infrastructure along with actions that improve the industrial environment. This is a very positive development indeed. However, the key challenge is implementation. All future industrial corridors, factories, and manufacturing hubs need to be developed keeping in mind clean energy at its core. Energy cannot just be an additional utility anymore.
The Economics of Change
India’s non-fossil-based power capacity exceeds 300 GW. India is on course towards meeting its objective of 500 GW of renewable power capacity by 2030. All this changes the economics of production. Renewables are not just the environmentally responsible choice anymore. They have become the financially responsible choice. The predictable cost of power makes planning easier. The dependency on unpredictable fuel prices diminishes. The businesses which invest in clean power sources today will find themselves with an edge in the future.
Factory Reality
Some factories continue to lose a lot of value through inefficient machinery and obsolete energy practices. Increasing efficiency does not always depend on costly expansions. It often starts from improved energy utilization. Energy-efficient machinery, digital monitoring, energy recovery systems, and effective energy management may lead to tangible cost reductions. Clean energy becomes even more important once efficiency is achieved. Innovation should not be pursued for its own sake. It should be used to fix problems. Manufacturers are fully aware of that fact. Every saved kilowatt of energy adds to profitability. Every improvement in efficiency adds to competitiveness.
Global Pressure
The international market is changing fast. Major buyers have begun to look at the carbon footprint of their suppliers before making any purchases. This trend is only going to increase. The Indian industry must use this development as an opportunity and not as a problem. A clean base of production will help to boost exports and investments. It is the industries dealing in electronics, automobiles, engineering goods, chemicals, and textiles that will reap the maximum benefits from such a move. While policy is important, stability is crucial for business success. Policy support remains important, but consistency matters even more. Businesses invest with confidence when regulations remain stable and infrastructure keep pace with industrial growth.
A Common Future
Clean energy is not a question of environmental responsibility, but an economic opportunity. India possesses the potential for developing a manufacturing system that is efficient and sustainable. The development of an appropriate manufacturing environment could help India become one of the three largest centers of advanced manufacturing in the world by generating more than 25 percent of national GDP and creating more than 100 million jobs. However, such success cannot be achieved merely through ambition, but through realistic decisions made now. The future factories will be different not only because of their ability to produce more, but also because of their ability to use energy more efficiently and compete more successfully.
