Industrial Update – Newsletter – March 2026
IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India
India’s energy sector is undergoing a structural shift, balancing strong demand growth with a clear move toward cleaner sources.
While India remains coal dependent, policy support, rising renewable capacity and energy security priorities are steadily changing the mix. The sector is at a key turning point between reliability and decarbonization.
India’s primary energy dependance:
India’s energy system remains structurally anchored to fossil fuels despite rapid renewable capacity additions. Coal dominates power generation and heavy industry and is expected to dominate for the next decade; oil underwrites virtually all transport demand with deepening import dependency; and biomass still fuels the kitchens of 700 million rural Indians, leaving LPG supply chains as a live geopolitical vulnerability. Renewables, while growing fast, are still a capacity story rather than a generation reality — the true transition will hinge on storage, grid infrastructure, and the pace at which industries can decarbonize.
Yet the transition is now firmly in execution mode, with targets, policy visibility, and capital deployment increasingly aligned. The 500 GW non-fossil capacity goal by 2030, a 68% clean generation share by FY2032, and a net-zero commitment for 2070 define the strategic direction — and with ~49% non-fossil installed capacity already achieved and a strong pipeline under implementation, execution momentum is tangible.
Large-scale initiatives are expanding both capacity and domestic capability: the National Green Hydrogen Mission targets 5 MMTPA, PLI-driven solar manufacturing is scaling to ~88 GW, and ~₹1.09 lakh crore has been allocated toward distributed solar. Enabling policies — ISTS waivers, Green Open Access, and RPO targets — are improving project viability and accelerating state-level adoption. Critically, the focus is now moving beyond generation, with ~₹9 lakh crore in planned transmission investments by 2032 signaling that grid readiness is becoming the governing constraint on the pace of delivery.
Some recent transactions
Recent News
- Amid war-driven uncertainty and supply chain disruptions, Brent crude exceeded $100/bbl, the USD strengthened (₹94/USD), and weaker demand drove a ~17% decline in gold and ~31% decline in silver
- India’s manufacturing PMI increased to a four-month high of 56.9 in February (vs. 55.4 prior), driven by strong domestic demand, higher new orders, and stable employment; figures >50 indicate expansion
- Japan has committed a development loan worth ~$1.73 Bn to India for 4 projects in the sectors of urban transport, health and agriculture
- Coal India is investing ₹3,600 crore in eight new coking coal washeries by FY2030 to reduce import dependence
- China set its lowest growth target since the early 1990s — Premier Li Qiang announced 2026 GDP target of 4.5–5% down from 5% achieved in 2025, reflecting a shift in focus toward high-quality growth
IMAP Industrials Index & Valuation of sub-segments
Commodity Prices Index
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