India is undergoing a transformational shift in its energy sector, with a growing focus on natural gas as a cleaner and more sustainable alternative to coal and oil. Rajnath Ram, Advisor (Power and Energy) at NITI Aayog, highlighted at the third Energy Summit hosted by the Indo-American Chamber of Commerce the immense opportunities that India has to transition to a gas-based energy economy. Although natural gas only comprises 7% of the Indian energy portfolio at present, the government is putting in place the foundations of a vastly increased usage.

Long-term support and balancing sustainable growth 

India is slowly shifting to gas-based energy, which is supported by a set of proactive policies. Rajnath Ram indicated that there has been enough ground covered and the nation is poised to make a giant leap towards its energy strategy. These efforts consist of long-term supply contracts of Liquefied Natural Gas (LNG), city gas distribution networks extension, and regulatory changes that help to attract investment in the private sector.

The government is also completing the roadmap and budgetary allocation of the Carbon Capture, Utilisation and Storage (CCUS) Mission- a crucial element of India’s net-zero strategy. CUS technology has the power not only to allow the continued use of fossil fuels but also to separate carbon emissions and repurpose them, a fact that makes it one of the crucial technologies that will allow the world to walk a line between energy security and climate responsibility.

India has a strategy of energy that is based on the interdependence of three key aims, which are energy security, sustainability, and affordability. The minister Rajnath Ram observed that India has already reached a point of 50 % non-fossil-based generator power, 5 years ahead of the goal. This milestone marks an effort by the country to have clean energy, as it suffers from the rising energy demand due to the inherent rural-urban migration and industrialization.

The focus on natural gas is entirely consistent with the same. Gas can be used as a medium-term energy source because it is less carbon-emitting than coal and oil, yet still offers the same sense of security as manufacturing, transport, or even household use depends upon.

Innovation and power sector expansion

The summit also highlighted how financial instruments can help speed up India on its path to green energy. Vineet Nahata, Central Board of Trustees, EPFO, emphasized that increasing the pace of renewable energy efforts should be a priority and that sovereign green bonds issued by the Reserve Bank of India present an encouraging prospect to finance clean energy initiatives.

Vineet Nahata noted several challenges on the way toward green financing, including the lack of tax incentives. Nonetheless, the author emphasized the overall social good of green financing. The lower interest rates and capital invested in sustainable infrastructure will eventually lead to the growth of the economy and environment. He further said that both the Finance and the Environment Ministries are engaged in policy-making in support of ESG (Environmental, Social, and Governance) priorities to make India a global leader in climate-conscious development.

India has, in the last decade, experienced a rapid growth in the power sector. There has been a rise in electricity generation with 1,168 billion units (BU) in 2015-16 and estimated to be 1,824 BU in 2024-25. Likewise, total installed capacity has ballooned from 305 gigawatts (GW) to 475 GW between the same period. This has been sustained through both traditional and alternative sources and has been enabled by robust policy systems and the development of infrastructure.

Incorporation of natural gas in this proliferating energy mix will be of great importance. It has the flexibility, scalability, and low emissions- suitable for both base-load and peak-load operation. With a maturing gas network and cost-competitive pricing, industries and consumers will enjoy more clean, reliable energy.

Conclusion

The energy transition being witnessed in India is not on a pillar of its own. It has been estimated that the energy demand in the country is poised to rise at the highest rate among all the major economies, owing to continued GDP growth, as well as the rise in per capita consumption. The transition will contribute to addressing the increasing energy requirements as well as supporting climate targets and the sustainable development of India.