India Electricity Growth: India’s Electricity Demand to Triple by 2035, Cross 4 Trillion Units: OmniScience Capital
India Electricity Growth: India’s Electricity Demand to Triple by 2035, Cross 4 Trillion Units: OmniScience Capital
India is on the cusp of a transformative energy revolution. According to a groundbreaking report released by OmniScience Capital, titled “Watt’s The Future: India’s 4 Trillion Unit Electricity Consumption by 2035,” the country’s electricity demand is expected to triple in just over a decade — from 1.4 trillion units (TWh) in 2023 to a staggering 4 trillion units by 2035. This massive increase, projected at a compound annual growth rate (CAGR) of 9.2%, will be driven by rapid industrialization, electrified transportation, commercial expansion, and a booming digital economy.
The report reveals that electricity will no longer remain a basic utility — it will become the backbone of India’s industrial ambition, national development, and digital inclusion.
Major Drivers Behind the Growth
One of the report’s most striking insights is the impact of what it calls the “Power Trio” — Electric Vehicles (EVs), Data Centers (DCs), and Indian Railways. Together, these three sectors alone will consume around 500 TWh of electricity annually by 2035, contributing approximately 12–13% to total national consumption. The electrification of India’s vast railway network and the exponential rise in EV usage are expected to lead the transport sector’s power demand, which is anticipated to grow at a blistering pace of 16.8% CAGR.
Meanwhile, the industrial sector is set to witness a monumental shift, with its electricity consumption predicted to hit 1,650 TWh by 2035 — more than the entire country’s total electricity usage in 2023. The rise of green manufacturing, production-linked incentives, and energy-intensive sectors like metals, chemicals, and electronics will contribute significantly to this surge.
On the commercial front, businesses in retail, hospitality, and healthcare are projected to consume 798 TWh, marking a 4.4-fold jump in electricity needs. At the same time, India’s residential demand will surpass 1,000 TWh, powered by increasing urbanization, a rising middle class, and deeper penetration of electric appliances and air conditioning.
Even in agriculture, where consumption is typically high due to irrigation pumps, efficiency will improve due to electrification and modernization, though overall demand will continue to grow moderately.
Investment Implications and Economic Outlook
Beyond demand projections, OmniScience Capital’s report delves into the investment landscape. As of June 2025, India’s entire power ecosystem—spanning generation, distribution, renewables, EVs, and infrastructure—commands a market capitalization of ₹74.4 lakh crore across 230 companies in 10 key categories. With strong forward valuations and long-term growth signals, sectors like power transmission, smart grids, renewable energy, and battery storage offer unprecedented investment opportunities.
Dr. Vikas V Gupta, CEO and Chief Investment Strategist at OmniScience Capital, emphasized the transformative nature of this shift:
“As India powers ahead toward a 4 trillion-unit future, electricity is no longer just a utility — it’s the currency of industrial ambition, digital growth, and national inclusion.”
What Lies Ahead
This landmark transition will not happen without substantial infrastructure development. The report hints at OmniScience’s next edition, which will examine a ₹60–65 trillion investment opportunity across India’s power generation, grid expansion, and clean energy value chain. The focus will be on building the green, intelligent, and resilient energy systems required to power the world’s most populous democracy.
With such a high-stakes future in sight, India’s electricity sector is poised to become one of the most dynamic spaces of the coming decade—offering a rare confluence of national need, investor interest, and technological innovation.
