India is standing at a crossroads as it charts an ambitious path toward becoming a developed economy by 2047. This journey, as highlighted in a new report by the Confederation of Indian Industry (CII) and EY, will require a seismic transformation in the nation’s energy landscape—one that balances the demands of growth, sustainability, affordability, and security in equal measure.
On September 25, 2025, the CII-EY report, titled Eigenvectors of Net Zero Energy Transition: Pathways to Viksit Bharat 2047, laid out the scale of India’s challenge. According to ANI, the report projects that India’s primary energy supply must triple to nearly 35,000 TWh by 2047 if it is to reach its vision of a USD 30 trillion GDP and a population of 1.5 billion. But meeting this demand sustainably is no small feat. The report calls for a staggering forty-fold increase in non-fossil energy sources to provide two-thirds of the projected energy needs by that date.
India has already notched a significant milestone: achieving 50 percent non-fossil power capacity in 2025, five years ahead of its original 2030 target. Chandrajit Banerjee, Director General of the Confederation of Indian Industry, told ANI, “India stands at a defining moment in its energy transition journey, having crossed 50 percent non-fossil capacity five years ahead of its NDCs, a testament to its ambition and ability to balance sustainability with growth.”
Yet, as the report makes clear, the road ahead is fraught with challenges. To ensure economic stability, the energy cost share (ECS) must be kept below 10-11 percent of GDP. Rising energy costs could undermine growth if not managed carefully. And there’s more: the report spotlights growing health and environmental risks, particularly from PM2.5 air pollution, urging the government to adopt integrated policies that bridge health, energy, and environmental sectors.
India’s reliance on imported low-carbon technologies is also under scrutiny. In fiscal year 2025, such imports accounted for 0.21 percent of GDP—a figure the report says underscores the urgent need to strengthen domestic manufacturing and reduce dependence on foreign suppliers. The call is clear: India must build up its own capabilities if it wants to lead the clean energy revolution and safeguard its energy security.
One of the most pressing issues, however, is the role of nuclear power in India’s energy mix. Nuclear currently accounts for less than 3 percent of the country’s electricity generation, but the government has made it clear that scaling up nuclear capacity is essential to reduce reliance on fossil fuels and achieve its 2070 net-zero emissions goal. As Reuters reported on September 25, 2025, the government is preparing to set up a dedicated nuclear liability fund to address one of the sector’s thorniest problems: risk-sharing.
Currently, India’s nuclear liability law makes plant operators responsible for damages up to ₹1,500 crore (about $169 million), with the government covering any claims beyond that. But the absence of a clear financial framework for liabilities above this threshold has made foreign suppliers—especially from the US, France, and Japan—wary of investing in Indian nuclear projects. The proposed fund aims to change that by creating a structured pool of money, backed by government allocations and possibly industry contributions, to meet compensation requirements in excess of the operator’s liability cap.
Officials told Reuters that this move is designed to provide “predictability and confidence” for suppliers, while ensuring that victims of a nuclear accident have a guaranteed source of relief. Industry analysts note that liability concerns have long been a stumbling block for India’s nuclear sector, limiting foreign participation and slowing the adoption of advanced reactor technologies.
“This mechanism could open the door for advanced reactor technologies and greater private involvement in construction and supply chains,” an industry expert said, according to Reuters. The government hopes that by addressing these concerns, it can attract global suppliers, accelerate stalled projects, and unlock the potential of nuclear energy as a clean and reliable power source.
The CII-EY report also calls for legal clarity on permissible private sector activities in nuclear power and the fuel cycle, as well as strengthening nuclear-grade supply chains through quality assurance and vendor development. It advocates involving the private sector in a defined framework for Bharat Small Reactors—a move that could spur innovation and investment in this critical area.
But nuclear is just one piece of the puzzle. The report stresses the need for a shift from fragmented, target-driven planning to integrated, risk-informed policymaking. Only by balancing affordability, security, sustainability, and competitiveness can India transform its energy transition into a driver of economic growth, social well-being, and global leadership.
To maintain energy affordability, the report insists that the energy cost share must not exceed 10-11 percent of GDP. If energy prices spiral out of control, the risk to economic stability and competitiveness could be severe. The report also highlights the environmental and health risks posed by PM2.5 air pollution, urging the government to craft policies that address these issues holistically, rather than in isolation.
As India’s energy consumption is expected to surge alongside economic growth, the stakes are high. The report’s authors warn that energy affordability and supply security will be just as critical as decarbonization. If India is to meet its net-zero ambitions without sacrificing growth or social welfare, it must find a way to balance these competing priorities.
The proposed nuclear liability fund is a step in that direction—one that could unlock foreign investment, facilitate technology transfer, and strengthen supply chains. But its success will depend on careful implementation and close collaboration between regulators, state-owned operators like NPCIL (Nuclear Power Corporation of India Ltd.), and global suppliers. According to Reuters, the details of the fund, including the size of the corpus and its funding model, are expected to be finalized in the coming months.
Meanwhile, the report’s broader message is unmistakable: India’s energy transition is a multidimensional challenge that requires bold action, innovative thinking, and unwavering commitment. The choices made today will shape the nation’s trajectory for decades to come, determining not just whether India becomes a developed economy by 2047, but also what kind of society it will be—resilient, sustainable, and inclusive, or struggling to balance the demands of growth and the imperatives of sustainability.
As the world watches, India’s energy transition is more than just a domestic story—it’s a test case for how emerging economies can chart a course toward prosperity without compromising the planet’s future. The country’s next steps will be critical not just for its own citizens, but for the global community as well.