India's energy demand set for a comeback in FY27

Business Jan 02, 2026

India's energy use is expected to pick up again in FY27 after a slowdown this year.
Natural gas demand should rise 3-4%, thanks to more city gas networks and an industrial boost, bouncing back from earlier drops in the fertilizer and power sectors.

Renewables and tech are driving the shift

Electricity needs are also predicted to grow by about 5-5.5% next year as things normalize post-monsoon.
The big story: India's renewable energy capacity shot up 109% this year, adding over 31 GW—helped by cheaper solar panels and lots of new projects.
While there are still some hurdles with power deals and grid upgrades, the sector is pushing ahead with digital tools and AI for smarter, cleaner energy.