On June 18, 2025, the World Economic Forum (WEF) released its Fostering Effective Energy Transition 2025 report, ranking India 71st out of 118 countries on the Energy Transition Index (ETI), a drop from 63rd in 2024. Despite the slip, India, alongside China, recorded the greatest overall improvement among large economies, driven by advances in energy efficiency, investment capacity, and energy access. With a score of 53.3 (60.4 for system performance, 42.7 for transition readiness), India’s progress in renewables, grid reliability, and methane emission reductions is notable, though infrastructure gaps and import dependency pose challenges. Here’s a deep dive into India’s ETI performance and its path forward
- Key Point: India ranks 71st in ETI 2025, down from 63rd, but leads in efficiency and investment gains.
- Key Point: Sweden tops the list, followed by Finland, Denmark, Norway, and Switzerland.
- Key Point: India’s renewable energy capacity (42% of power generation) makes it the 4th largest renewables market globally.
What Is the Energy Transition Index (ETI)?
The ETI, published by WEF in collaboration with Accenture, benchmarks 118 countries on their energy systems’ performance across three dimensions:
- Energy Security: Reliable and affordable energy supply.
- Sustainability: Low-carbon and renewable energy adoption.
- Equity: Universal access to affordable energy.
It also evaluates transition readiness through five factors: political commitment, finance/investment, infrastructure, innovation, and human capital. In 2025, 65% of countries improved their ETI scores, but only 28% progressed evenly across all three dimensions, highlighting uneven global progress.
- Key Point: India scored 60.4 in system performance but 42.7 in readiness, showing infrastructure gaps.
- Key Point: Global emissions hit 37.8 billion tonnes in 2024, despite $2 trillion in clean energy investment.
- Key Point: Energy demand rose 2.2% in 2024, driven by AI, data centers, and electrification.
🇮🇳 India’s Performance: Strengths and Gains
India’s ETI 2025 rank of 71st reflects a complex narrative, with significant achievements:
- Energy Efficiency: Reduced energy intensity (energy used per GDP unit), making India’s economy more efficient.
- Investment Capacity: Increased clean energy investments, with renewables and biomass at 42% of power generation, ranking India as the 4th largest renewables market globally.
- Energy Access: Achieved universal electricity access and improved grid reliability, especially in rural areas.
- Methane Reduction: Lowered CH4 emissions, supporting climate goals.
- Regulatory Progress: Favorable policies, like rooftop solar incentives and EV charging frameworks, boost transition readiness.
India’s per capita emissions (1.7 tonnes CO2) remain 60% below the global average (4.4 tonnes), a strength WEF highlights for replication globally.
- Key Point: India and China led large economies in overall ETI improvement.
- Key Point: Solar energy initiatives, like PM Suryaghar Yojana, drive India’s renewable growth.
- Key Point: X posts praise India’s efficiency but note ranking drop due to global competition.
Challenges Holding India Back
Despite progress, India’s 8-rank drop from 63rd (2024) to 71st (2025) stems from:
- Infrastructure Bottlenecks: Limited grid modernization and storage capacity hinder renewable integration.
- Import Dependency: Reliance on imported coal and gas impacts energy security.
- Workforce Gaps: Need for skilled labor in clean energy sectors like solar and wind.
- Coal Phase-Down: Coal still accounts for 49% of India’s energy mix, slowing sustainability gains.
- Rising Demand: 2.2% energy demand growth in 2024, driven by AI, data centers, and urbanization, strains systems.
- Key Point: Only 28% of countries, including India, progressed unevenly across security, sustainability, and equity.
- Key Point: Geopolitical tensions and investment gaps threaten global transition momentum.
- Key Point: X users flag coal dependency as a “major hurdle” for India.
Global Context: Where India Stands
The ETI 2025 ranks Sweden first, followed by Finland, Denmark, Norway, and Switzerland. China (12th) and the US (17th) outperform India, while Pakistan (101st) and Congo (118th) lag. The top five economies (China, US, EU, Japan, India) drive 50% of global GDP and 66% of emissions, making their transitions critical.
- Sweden: Leads with robust policies and renewable diversity.
- China: Climbed to 12th with massive clean energy investments.
- US: Excels in energy security and sustainability but faces equity challenges.
- India: Outpaces peers in efficiency but trails in infrastructure readiness.
- Key Point: India’s ETI score (53.3) is above Pakistan but below China’s 62.1.
- Key Point: Top 10 countries account for only 1% of global CO2 emissions, unlike India’s 7% share.
India’s Path Forward: WEF Recommendations
To boost its ETI ranking and sustain progress, WEF suggests India focus on:
- Grid Reliability: Upgrade transmission networks for renewable integration.
- Renewable Expansion: Scale up solar and wind to reduce coal dependency.
- Workforce Development: Train youth in green tech via programs like Skill India.
- Financing: Attract private investment for storage and EV infrastructure.
- Policy Push: Strengthen regulations for energy-efficient buildings and retrofitting.
- Key Point: India’s $100 billion renewable investment in 2024 needs doubling by 2030.
- Key Point: Reducing methane emissions aligns with India’s Net Zero 2070 goal.
- Key Point: X discussions urge faster coal phase-out for ETI gains.
Tips for Stakeholders in India’s Energy Transition
For policymakers, businesses, and citizens, here’s how to support India’s energy goals:
- Policymakers: Incentivize renewables via subsidies and streamline green project approvals.
- Businesses: Invest in solar, wind, and EV charging to leverage India’s growing clean energy market.
- Citizens: Adopt energy-efficient appliances and participate in rooftop solar schemes like PM Suryaghar.
- Students: Pursue courses in renewable energy engineering to join India’s green workforce.
- Stay Informed: Follow @mnreindia on X and mnre.gov.in for updates on energy policies.
- Key Point: Rooftop solar installations grew 20% in 2024, per MNRE data.
- Key Point: Citizens can save ₹5,000/year with energy-efficient devices, per X posts.
What’s Next for India’s Energy Transition?
India’s ETI 2025 performance sets the stage for ambitious goals:
- Renewable Target: 500 GW by 2030, with solar and wind leading.
- Coal Phase-Down: Reduce coal’s share to 30% by 2035, per NITI Aayog.
- Infrastructure Push: ₹10 lakh crore investment in grid and storage by 2030.
- Global Leadership: India to host G20 Summit 2026, showcasing green tech innovations.
- Key Point: India’s 4th largest renewable market status drives global influence.
- Key Point: ETI 2026 will test India’s progress in infrastructure and coal reduction.
- Key Point: X trends predict India could hit top 50 with sustained reforms.
India’s Energy Future: Balancing Growth & Sustainability
India’s 71st rank in the WEF Energy Transition Index 2025 reflects its strides in energy efficiency and investment capacity, despite slipping from 63rd due to global competition. With 42% renewable power, universal electricity access, and a robust policy framework, India is a key player in the global energy transition. Addressing infrastructure gaps and coal dependency will unlock further gains. Stakeholders, let’s rally behind India’s Net Zero 2070 vision and build a sustainable future!
