A coalition of 112 companies, including Nestle, Uber and Ikea, has urged governments to place electrification at the centre of economic policy, arguing that replacing fossil-fuel-based technologies with electric alternatives can strengthen energy security, reduce costs and support long-term growth. According to reports from Business Standard, this coalition represents a significant corporate push toward the electrification frontier, spanning from electric vehicles to battery factories and AI data centres. The momentum has now gained international traction, with dozens of governments, led by the EU and the UK, committing to throw their political weight behind a rapid electrification of the world's economy. As reported by Climate Home News, a high-level summit in London's Mansion House saw energy ministers and business leaders joined by UN secretary-general António Guterres in calling for faster action to curb demand for oil, coal and gas by powering homes, industry and transport with clean electricity.
India's net import bill for crude oil and petroleum products rose to $116.4 billion in FY25 from $108.6 billion in FY24, highlighting the economy's continued dependence on imported energy. As reported by Business Standard, experts argue that electrification offers a potential pathway to reduce this vulnerability. The International Energy Agency estimates that India's oil import bill could be $1.4 trillion lower between 2019 and 2040 under a cleaner energy pathway, savings that could offset the additional investments required for the energy transition. This global push for electrification comes as oil prices have fallen back to below pre-Iran war levels, with the Financial Times reporting that a wave of pent-up oil started to flow from the Gulf, leading traders to shrug off the risk of aftershocks from the crisis.
According to Dr Faruk G Patel, Founder and CMD of KPI Green Energy, the contribution of fossil fuels to Indian government revenues was estimated at nearly ₹9 trillion in FY24, accounting for around 16 per cent of total revenues. As reported by Business Standard, Patel noted that the transition underway is now beginning to reprice that power. The global context shows similar challenges, with the Wall Street Journal reporting that US president Donald Trump has instructed the Justice Department to look into major oil companies, accusing them of "gouging" customers by not lowering pump prices in line with falling oil costs. Meanwhile, the head of Brazil's state-run oil giant Petrobras has said the country must decide between transitioning away from fossil fuels and preserving tax revenue.
The production-linked incentive (PLI) scheme for high-efficiency solar photovoltaic modules has attracted investments worth ₹52,900 crore and generated more than 44,400 jobs as of September 2025. According to Business Standard, the government has outlined an ambitious expansion plan under the National Electricity Plan, aiming to invest around ₹9.15 trillion to expand the transmission network to 648,000 circuit kilometres by 2032. The Union Budget 2026-27 increased allocations for the Ministry of New and Renewable Energy by over 40 per cent to ₹44,614 crore. In China, the country's new policy to boost consumption of clean energy marks the entry of "mandatory renewable energy integration," while Chinese automakers continued their rapid expansion in Europe in May, according to the South China Morning Post.
India currently relies almost entirely on imports for lithium, cobalt and nickel, making supply-chain security a key challenge for the energy transition. As reported by Business Standard, India has allocated $3.94 billion under the National Critical Mineral Mission between 2024 and 2031 to secure supplies and strengthen domestic value chains. Solanki argued that while oil dependence is a flow dependency requiring continuous imports every day, critical mineral dependence is largely a stock dependency requiring upfront inputs to build infrastructure that can operate for decades. The global context shows China's "independent oil refiners have slashed operating rates to a nine-year low" amid high costs and "weak" domestic demand, while China's EV technology is "starting to make inroads" in India despite New Delhi's blocks on Chinese brands since 2020.
