Page 29 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• Key Factors Driving the Expansion:
Government Initiatives & Policy Reforms
? Strengthened partnership with the ILO and targeted social security programs.
? Enhanced labor market flexibility and job creation.
? e-Shram Portal: Over 300 million unorganized workers registered, ensuring last-mile delivery
of social benefits.
? e-Shram Mobile App: Launched to improve accessibility and convenience for workers.
Rising Employability and Skill Development
? With 65% of India’s population under 35, skill development has been prioritized.
? Employability of Indian graduates increased from 33.95% in 2013 to 54.81% in 2024.

These reforms highlight India's commitment to social security expansion, workforce development, and
economic inclusivity.

7. Power sector will need Rs 6.4 lakh crore investment until FY35: Moody's
Investment Projections

• India’s power sector will require an estimated ?4.5-6.4 lakh crore in investment until FY35,
accounting for 2% of real GDP annually over the next 10 years, according to Moody’s Ratings.

• Beyond FY35, the sector will need ?6-9 lakh crore annually from FY26-FY51, which is 1.5-2% of
GDP over 25 years.

• India's projected power sector investment as a percentage of GDP is higher than China and
Australia over the same period.

Key Investment Focus Areas
• Renewable energy will dominate, with solar and wind power leading capacity additions.
• Nuclear and hydropower will see comparatively smaller investments.

Funding Sources & Challenges
• Public and private sector funding along with domestic and foreign capital will drive investments.
• Conventional bank lending and non-banking financial institutions (NBFCs) will finance under-

construction projects.
• Debt capital markets will be crucial for refinancing operational projects.
• Access to long-term, low-cost, and foreign capital will be critical to bridge the funding gap.

Role of the Private & Government Sectors
• The private sector will continue to play a major role in India’s renewable energy expansion.
• Government-owned power companies are also expected to increase their involvement in the

sector.

This highlights India's strong commitment to clean energy transition, requiring robust financial strategies
to meet the growing energy demand.

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