India needs to win the Green Race
and not the Rat Race
“We have to take a resolution-a resolution of using petrol and diesel sparingly, ‘’ PM Modi said in a recent speech. Along with this, he also encouraged Indians to revert back to the COVID-era Work From Home setup, besides dissuading Indians from buying gold.
For PM Modi, this request comes at a time when the government cannot shield us anymore from inflation. Oil prices have already risen more than 50% since the start of the hostilities between Iran and the US even as LPG supplies remain inconsistent.
Oil Marketing Companies (OMCs) have had to eat up almost Rs.1,700 crores daily to keep petrol, diesel and LPG prices stable, with the total loss reaching almost Rs.1 lakh crore (and counting) since the prices rose following the war.
For India, oil remains the most vulnerable link to economic progress. Almost 85% of our oil is imported, and any sudden changes in oil prices can make inflation and recession a very serious threat that cannot be addressed in the short term.
Taking things for granted: The biggest feature of the ‘Rat race’
Over the years, our economic growth has been defined by how fast and how cheaply we can get things done. This has meant assembling iPhones at a lower cost than China, maintaining software for an MNC at one fifth the price or handling irate customers who were having trouble setting up their ovens.
We’ve been able to do all of this at a price much lower than other countries, and have been working to keep up that status in order to keep ourselves competitive. If input prices rise this becomes a problem, as this makes it harder for us to compete in the ‘rat race’.
The main condition to win the rat race? Assuming every variable associated with competing remains the same. But that isn’t meant to be. For the IT industry, the game changing AI tools have forced them to lay off thousands, especially as recurring work is now automated. Even as we boast of becoming the world’s second biggest smartphone exporter, we have been importing almost 80% of the components that go into the phones. We are competing primarily on cost and time optimization, but AI optimization offers a ceiling that will undercut these advantages, and we have to address this before it’s too late.
But there is another race that doesn’t compete on time and cost advantages. It is a race that has been in the works for quite some time, even though it is only now that it has come to the limelight.
Welcome to the ‘Green Race’
The intention behind it
Energy remains central to the growth of an economy. For us, most of this is derived from crude oil- to power our cars, trucks and buses, and coal, to power our homes, offices and factories. The growth of our economy depends on one fragile assumption- the oil and coal will keep coming forever. But it is not meant to be. Especially as we still depend on other nations for 85% of our oil. With the Strait of Hormuz blocking international oil shipments, this has effectively blocked economic progress, a vulnerability that we cannot afford to ignore.
We thus need to build our own energy resources without depending on exports. This is a self assigned goal that requires innovation and timely implementation, not just competition. It is a race where we push ourselves to fulfill demand so we don’t have to pay through our noses for this. We are already working on it, albeit out of necessity.This means offering a technology based solution that not only offers us consistent profits, but enhances the standard of living, welfare and health of everyone in society.
For a country obsessed with competing in a rat race, getting into the game that doesn’t depend on a daily grind, rather the outcome of our work, isn’t going to be easy, but will be rewarded well. Welcome to the ‘green race’ a race to wean ourselves away from imported fossil fuels to EVs and from polluting coal plants to generating and distributing clean, renewable energy.
Why the ‘Green Race’ Is Different From Every Other “India Growth Story”
This is a fundamentally different race that doesn’t depend on assumptions, prices or timing. It depends on ingenuity, logic, and developing infrastructure that helps meet our needs without depending on external sources.
Lets get into some facts on our Energy Security (Pun intended).
In 2015, just 6% of our energy came from renewables- primarily solar and wind. In 2025, it is close to 27%, and growing. Through sustained capacity additions, we have eliminated power cuts from 4.2% supply shortages to just 0.03% today, according to government sources.
Though this is a great achievement, China has been there, done that. Over the years, it has invested in upgrading its technology to meet rising demand for energy. This has meant adding new renewable energy capabilities while upgrading transmission and storage infrastructure simultaneously. It has meant investing in R&D to develop EV technology that substitutes fossil fuel vehicles to EVs, and to create a manufacturing capability in-house. Even as the world hopes for a ceasefire in the Middle East, China isn’t that worried, as it has gotten far ahead in the ‘green race’ to care for such geopolitical events. For India, this green race isn’t about keeping costs low, but about producing enough domestically while keeping prices within reach as the markets decide what to produce, how much to produce and how to produce.
Here we are solving challenges. That’s what makes the ‘Green race’ special. It depends on catering to solving problems for ourselves, not for others. This essentially means 3 things.
It cannot be outsourced. A solar plant in Rajasthan serves India. An IT project in Bangalore serves America. Renewable energy infrastructure is inherently domestic, the capacity built here, stays here, earns here.
It has a regulatory tailwind that won’t reverse. Every government, regardless of political stripe, needs cheaper electricity and energy independence. This is not a policy cycle. It is a structural imperative.
The demand curve is non-negotiable. India’s electricity consumption is growing at 4-6% annually, double the global average. That demand must be met. The question is only whether it gets met with coal or with wind and sun. The economics now favour the latter.
The Green Race Has Real Obstacles
Winning this race is not guaranteed. And pretending otherwise would be dishonest.
India’s renewable capacity has grown impressively on paper. But capacity installed is not the same as energy delivered. Solar and wind are intermittent, the sun doesn’t shine at night, the wind doesn’t blow on demand. India’s grid infrastructure, built for coal’s predictable output, is not yet equipped to handle the variability that comes with 500 GW of renewables. Transmission losses remain high. State electricity distribution companies DISCOMs carry huge accumulated debt, making them unreliable buyers of the clean energy being generated.
Then there is the manufacturing gap. India’s solar capacity is booming, but a significant share of the components — cells, wafers, polysilicon still come from China. We are assembling the green future with someone else’s parts. True energy independence requires owning the supply chain, not just the installation.
And the target itself is ambitious to the point of demanding uncomfortable honesty. India needs to roughly double its annual renewable capacity additions to hit 500 GW by 2030. At current pace, the projected landing is closer to 378 GW. The gap is not insurmountable but it requires urgency that the grid, the financing ecosystem, and the manufacturing base are not yet fully delivering.
The Green Race is worth running. It is just harder than the headline numbers suggest.
Why the ‘Green Race’ is the next opportunity
The companies that will win India’s Green Race are not always the ones making the headlines. They are not just the solar panel installers or the wind turbine operators. They are the businesses solving the harder problems — grid modernisation, energy storage, power transmission, green hydrogen, and the electronics manufacturing that makes all of it work at scale.
These are companies that don’t depend on oil prices, foreign clients, or global cost arbitrage. Their market is India’s own rising electricity demand- a curve that no government will reverse and no technology will disrupt. That is a fundamentally different kind of business than anything the last four decades of Indian growth produced. At Greenportfolio, we have been tracking these companies through our dedicated Green Energy theme, even as more companies upskill themselves to meet the unique demands in the market.
Disclaimer: This newsletter is for informational and educational purposes only and does not constitute investment advice or an offer or solicitation to buy or sell any securities. Views expressed are based on publicly available information as of the date of publication and may change without notice. Please consult a qualified financial adviser before making any investment decision.