Energy Efficiency in Indian Manufacturing Sectors
Summary
The Indian manufacturing sector is a critical driver of economic growth yet remains highly energy dependent, accounting for a substantial share of national electricity and fuel consumption. Key sub-sectors such as steel, cement, chemicals and textiles exhibit varying energy intensity profiles, reflecting disparities in technology adoption, process integration and operational practices. Over the past decade, concerted policy efforts—including the introduction of energy audits, mandatory performance ratings and the Perform-Achieve-Trade (PAT) scheme—have sought to align industrial growth with national climate and sustainability goals. Technological interventions range from waste-heat recovery and variable-speed drives to advanced process control and renewable energy integration, delivering both emissions reductions and cost savings. Despite progress, challenges persist in scaling up best practices, accessing finance for retrofits and harmonising disparate regulatory frameworks. Strengthening data-driven management, fostering public–private collaboration and embedding energy efficiency into supply-chain standards are vital for sustaining decarbonisation efforts and enhancing global competitiveness.
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Energy Efficiency in Indian Manufacturing Sectors publication trend
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Technical terms
Energy intensity: energy consumption per unit of industrial output.
Carbon intensity: carbon dioxide emissions per unit of energy consumed or product output.
Technical efficiency: capacity of a process or firm to maximise output from a given set of inputs.
Perform-Achieve-Trade (PAT) scheme: Indian market-based mechanism requiring energy-intensive industries to meet efficiency targets and trade surplus savings certificates.
Data envelopment analysis: non-parametric technique for assessing the relative efficiency of comparable entities based on input–output data.
References
- Does carbon intensity affect technical efficiency? An empirical assessment of manufacturing industries in Maharashtra, Odisha, and India. Discover Sustainability (2024).
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