India must boost renewable energy to shield economy, says Stern

India faces mounting pressure to expand its clean energy infrastructure as rapid digitalisation and data centre growth intensify electricity consumption across the country. The expansion of data-intensive industries presents both a challenge and an opportunity for policymakers to embed sustainability into the nation's energy strategy.

Accelerating the transition to renewable sources would strengthen India's economic resilience against external shocks, according to analysis by leading economists. Dependence on fossil fuel imports leaves the country exposed to volatile international oil markets and geopolitical tensions that can disrupt supply chains and drive up energy costs.

India's renewable energy capacity has grown significantly in recent years, but analysts argue the pace of expansion must quicken to keep pace with anticipated demand from data centres, manufacturing, and a growing digital economy. The challenge requires coordinated policy measures across power generation, grid infrastructure, and private sector investment.

Shifting to renewable energy also aligns with India's broader climate commitments and offers long-term economic benefits through lower operating costs and reduced import dependence. Policymakers are increasingly recognising that energy security and climate action are complementary objectives rather than competing priorities.