Sectors Covered

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Sectors Covered

Sectors Covered

Sectors Covered

SBI CHAKRA CoE is dedicated to creating value across eight sunrise sectors identified by the Government of India as future engines of growth.

Click on the sector you’d like to know more about:

  • India’s path to becoming a resilient and low-carbon economy is closely tied to the expansion of its renewable energy sector. With targets of achieving 500 GW of non-fossil fuel capacity by 2030 and net-zero emissions by 2070, renewables are poised to transform the nation’s energy landscape.
  • The renewable energy value chain spans multiple stages – from equipment manufacturing (solar modules, wind turbines, inverters) and project development to grid integration, storage, and energy trading. Key use cases include utility-scale solar and wind parks, hybrid and rooftop installations, with pumped hydro projects (PHPs) and wind capacity expected to supplement solar energy in achieving the national non-fossil fuel target.
  • Renewable energy represents both a strategic and timely opportunity for India – beyond environmental gains, it strengthens energy security, reduces fossil fuel import dependence, and positions the country as a global clean energy hub. The sector offers strong business potential for banks through project finance, green bonds, and ESG-linked lending, supported by improving project economics, stable cash flows, and consistent policy backing. Government initiatives like the Approved List of Models and Manufacturers (ALMM) mandate, Viability Gap Funding (VGF) for solar plants, and Production-Linked Incentive (PLI) schemes - targeting up to 65 GW of integrated solar PV manufacturing with a ₹19,500 crore outlay - are further driving cost efficiency and domestic capacity. Large financial outlays expected over the next decade position the renewable energy sector to drive India’s low-carbon transition and reinforce sustainable economic growth.
  • India has achieved a major milestone by reaching 50% of its cumulative power capacity from non-fossil fuel sources by 2025, five years ahead of the 2030 target. In solar PV manufacturing, the country has built 144 GW of solar module capacity and 24 GW of solar cell capacity listed under ALMM. Domestic wind turbine manufacturing capacity has reached approximately 18 GW, with high levels of indigenisation and 70–80% domestic value addition. India is now among a select group of countries with the capability to manufacture all major wind turbine components.
  • “India has emerged as one of the world leaders in Energy Transition and this is evident in the growth that we have achieved in the area of Renewable Energy. We are committed to achieve 500 GW of Target by 2030. This is a golden opportunity of industry to invest in this sector,” –Shri R. K. Singh, Former Union Minister for Power & NRE, 2023
  • India’s data centre industry is emerging as a strategic pillar of the country’s ~₹90 lakh crore digital economy target by 2028. Acting as critical digital infrastructure, data centres enable cloud computing, fintech, and AI-led services that underpin national productivity. The expansion of data centres in the country is being driven by growing digitalisation, rapid adoption of AI across government and private sectors, increasing use of cloud services, 5G proliferation, data localisation mandates, and exponential data generation across sectors.
  • The value chain spans site development, power provisioning, network integration, cloud, and managed IT services, with growing diversification across hyperscale, colocation, and edge facilities. The segment’s capital intensity, high energy demand, and complex operational standards necessitate specialised capabilities.
  • The market is attracting substantial private and institutional investment. Leading domestic developers along with global investors are driving expansion. ₹55,000 crore of investment is estimated by 2027, aided by infrastructure-status recognition, fiscal incentives, and sustainability mandates. Together, energy efficiency and digital infrastructure financing position the sector as a high-impact, high-growth frontier for the coming decade.
  • Installed capacity of cloud data centres in India has reached ~1.3 GW and is expected to grow by 4-5 times by 2030, driven by adoption across banking, power and public infrastructure. The GI Cloud (MeghRaj), established under Digital India, provides secure and scalable cloud services for e-Governance, with over 2,170 Ministries and Departments onboarded. This is further reinforced by the IndiaAI Mission, with an outlay of ₹10,300 crore, which is accelerating domestic AI compute infrastructure and developing the ecosystem.
  • “India’s Digital Economy is expanding and driving the growth of Indian economy towards the goal of $5 trillion economy. The rapid rate of digitization is going to pose both challenges as well as opportunities. To tap the opportunities, we at MeitY, are working as per MeitY’s 1000 Day Vision plan. Data Centres are an important element of our Digital ecosystem that is soon going to be the best in the world. We are conducting consultations with all stakeholders for a New National Data Centre Policy. PM Narendra Modi is committed to make India a Global Data Centre Hub.” – Shri Rajeev Chandrashekhar, Former Union Minister of State for Electronics & Information Technology and Skill Development & Entrepreneurship, 2022
  • E-mobility, along with the associated charging infrastructure, has emerged as a pivotal driver in India's transition to a sustainable transport ecosystem. The government aims for 30% of all new vehicle sales to be electric by 2030, as outlined in NITI Aayog’s USD $200B opportunity roadmap, and plans to deploy around 72,000 public EV charging stations under the PM E-Drive scheme to strengthen nationwide charging infrastructure.
  • The sector spans a comprehensive value chain: upstream battery and component manufacturing (e.g., lithium-ion cells, motors), OEM vehicle assembly for 2Ws, 3Ws, and 4Ws, and downstream charging networks (public/private stations, battery swapping). Key use cases include urban commuting, last-mile delivery, and fleet electrification. Complexity arises from high upfront costs, grid stability for fast-charging, and localization mandates under PLI schemes, demanding integrated tech and policy support.
  • E-mobility offers strong growth potential amid rising investments and supportive policy initiatives. Indian EV market is projected to grow from ₹20,000 crore in 2024 to ~₹14 lakh crore by 2033, reflecting a CAGR of ~57%. Backed by policy framework including National Electric Mobility Mission Plan (NEMMP) and government schemes, notably FAME II, the newer PM E-DRIVE with an outlay of ₹10,900 crore and PLI for Automobile and Auto components with an outlay of ₹25,938 crore, the segment is set to play a pivotal role in advancing India’s transition to clean and electric transport.
  • In India, EV registrations have exceeded 20 lakh units in calendar year 2025, up from about 50,000 in 2016, led by strong two-wheeler and three-wheeler adoption. Public EV charging stations crossed 29,277 as of July 2025 versus 11,903 in December 2023, driven by government schemes. Central government interventions, including GST reductions for EV, road tax exemptions and commercial permit exemptions, have supported demand, strengthened domestic manufacturing, and expanded charging networks.
  • For us as a country switching to electric mobility is of absolute importance. One rider to emerge as a power (economy), is that you cannot be energy dependent. That is our primary reason to push towards EV." – Shri R.K. Singh, Union Minister
  • Advanced Cell Chemistry (ACC) / Batteries are expected to play a key role in driving the transition to a cleaner and more digitally integrated power ecosystem. Batteries are now integral to electric mobility, renewable energy integration, and intelligent grid systems. Driven by favourable market factors and strong government support, the manufacturing capacity for lithium-ion batteries in India is projected to grow to more than 100 GWh by 2030. Battery Energy Storage Systems (BESS) form another rapidly growing segment, with capacity requirement expected to reach about 236 GWh by 2031-32, supporting India’s target of 500 GW of non-fossil-fuel power generation and helping maintain grid stability as solar and wind capacity expand.
  • The market potential for India as well as financial outlay within the broader battery sector lies mainly in the cell mfg., component mfg. (cathode, anode, electrolyte, separator), and battery recycling. To support the growth of the sector in India, the Government has launched a Production Linked Incentive (PLI) scheme with an allocation of ₹18,100 crore to establish 50 GWh of ACC manufacturing capacity, alongside a Viability Gap Funding (VGF) scheme for BESS plants with an outlay of ₹9,400 crore. With significant financial outlays expected in the coming years, the ACC sector is poised to play a critical role in advancing India’s clean energy and storage transition.
  • Cell manufacturing capacity of ~1 GWh has been achieved in the country. More than 10 companies have announced their plans to build ACC gigafactories in India over the next five years. Under the Extended Producer Responsibility (EPR) framework, 487 recyclers have been registered, and about 58.26 lakh tonnes of battery waste has been recycled. Further, under stationary storage, as on end of 2025, BESS capacity of 790 MWh has been commissioned in India, with over 60 GWh of capacity under various stages of implementation.
  • “This [PLI Scheme for ACC/Battery storage] embarks a new chapter in India’s manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector. This will be favourable to EV ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector. Today big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub. This will also help us to achieve India's commitment to Panchamrit given by Hon'ble PM Modi ji in COP 26” – Dr. Mahendra Nath Pandey, Former Union Cabinet Minister for Heavy Industries, 2022
  • The semiconductor industry is a foundational pillar of India’s modern digital economy, driving technological self-reliance and innovation. It is critical for achieving technological sovereignty and supply chain resilience, both essential for advanced economic development. India strengthened its strategic focus with the launch of the India Semiconductor Mission (ISM) in December 2021, backed by a government outlay of approximately ₹76,000 crore. This initiative aligns with national priorities, with domestic semiconductor consumption projected to reach ~₹10 lakh crore by 2030.
  • The semiconductor value chain is comprehensive, spanning chip design (Fabless), wafer fabrication, foundries/IDMs, and outsourced assembly and testing (OSAT). Manufacturing in this sector is highly complex and capital-intensive, requiring substantial financing across the entire ecosystem to support capacity creation, technology development, and supply chain integration. Financing semiconductor foundries and OSAT plants is complex due to high capital intensity, rapid technology shifts, and market volatility. These projects require long-tenure financing structures to support large upfront investments in manufacturing and R&D.
  • Strategic interest in the sector has been strengthened by government incentives under the India Semiconductor Mission (ISM) and anchor commitments from global players. The semiconductor ecosystem represents a strategic and timely opportunity to advance high-technology and strategic manufacturing capabilities in India.
  • India has transitioned from policy planning to active project execution phase, with the India Semiconductor Mission (ISM) approving 10 major projects worth over ₹1.6 lakh crore across six states, backed by central government outlay of ₹76,000 crore. Operational milestones include the inauguration of the first OSAT pilot line in Sanand, the initial commercial shipments of multi-chip modules and the unveiling of the indigenous Vikram space-grade processor chip.
  • "Our goal is that 100% of electronic manufacturing should happen in India. India will make semiconductor chips and the finished product too. Whether it is mobile manufacturing, electronics, or semiconductors, our focus is clear—we want to build a world that doesn't stop or pause in times of crisis but keeps forging ahead," – Shri Narendra Modi, Hon’ble Prime Minister of India, 2024
  • Green hydrogen has emerged as a strategic pillar in India’s clean-energy transition, enabling deep decarbonisation across sectors such as steel, fertilizers, refining, and heavy transport. Anchored by the National Green Hydrogen Mission (2023), the Government of India targets production of 5 million tonnes per annum by 2030, supported by around 125 GW of renewable-energy capacity. The initiative directly contributes to the twin national goals of achieving Net Zero emissions by 2070 and realising the Viksit Bharat 2047 vision of a self-reliant, sustainable, and technologically advanced India.
  • India’s green hydrogen ecosystem now spans the full value chain - from renewable-power generation and electrolyser manufacturing to storage, transport, and end-use applications such as green ammonia and clean mobility. The sector is drawing significant public-private participation, though it remains capital-intensive and technology-driven, requiring innovative financing and risk-mitigation frameworks.
  • Government support is strong, led by the SIGHT Programme (Scheme for India’s Green Hydrogen Transition) and Hydrogen Hub Development Scheme, which incentivise electrolyser manufacturing and hydrogen production. Producers also benefit from inter-state transmission charge waivers, open-access renewable power, and state-level policies. While challenges remain, India’s integrated push across policy, technology, and finance positions green hydrogen as a key driver of clean growth.
  • Under the SIGHT programme in India, ~8.62 lakh tonnes per annum (TPA) of Green Hydrogen capacity and 3,000 MW per annum of electrolyser manufacturing capacity has already been awarded, creating the first domestic supply base. Multiple pilot and demonstration projects are underway across refineries, fertilisers, ports, steel, and hydrogen mobility, alongside early export-oriented green ammonia offtake discussions.
  • “India’s energy-mix strategies include a larger shift toward clean energy alternatives, increased manufacturing capacities, energy use efficiency and a policy push for Hydrogen including production-linked incentives. In addition, the emerging technologies like 2G Ethanol Pilot, Comfort climate box for tropical regions, Hydrogen Valleys, Heating and cooling virtual repository, are all on the table” – Dr. Jitendra Singh, Union Minister of State (Independent Charge) Science & Technology, 2023
  • Decarbonisation refers to the reduction of greenhouse gas (GHG) emissions across sectors. Decarbonisation is critical to mitigating climate change, protecting ecosystems, and promoting sustainable economic growth. In recent years, decarbonisation has become a central pillar of global climate policy, driven by the goals of the Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.
  • Decarbonisation represents a transformative opportunity for India, balancing economic growth with climate resilience. By leveraging levers like biofuels, CCUS (Carbon Capture, Utilization & Storage), and offsets, along with finance mobilization, India can achieve its 2070 net zero goal while fostering sustainable development.
  • Governments, businesses, and investors are increasingly committing to net-zero emission targets by mid-century, accelerating innovation in clean energy, carbon capture, and green finance. Indian corporates have also announced clear carbon reduction timelines, reflecting growing momentum. With large financial outlays expected over the next five years across electrification, renewables, CCUS, afforestation and efficiency improvements, the area is set for significant expansion driven by rising focus on sustainable financing.
  • India’s emission intensity of GDP reduced by 36% between 2005 and 2020, aligning with the target of a 45% reduction by 2030. The nationwide implementation of 20% ethanol blending in petrol (E20) was also completed by 2025, five years ahead of the original 2030 target. Further, India ranked 3rd globally in net annual forest area gain. Carbon sink of 2.29 billion tonnes of CO₂ equivalent was created between 2005 and 2023 in the form of tree and forest cover, ranking India 5th among global carbon sinks.
  • “In the midst of this global brainstorming on climate change, on behalf of India, I would like to present five nectar elements, Panchamrit, to deal with this challenge.
    • First- India will reach its non-fossil energy capacity to 500 GW by 2030.
    • Second- India will meet 50 percent of its energy requirements from renewable energy by 2030.
    • Third- India will reduce the total projected carbon emissions by one billion tonnes from now onwards till 2030.
    • Fourth- By 2030, India will reduce the carbon intensity of its economy by less than 45 percent.
    • And fifth- by the year 2070, India will achieve the target of Net Zero. These panchamrits will be an unprecedented contribution of India to climate action.” - Shri Narendra Modi, Hon’ble Prime Minister of India, 2021
  • Smart Infrastructure integrates traditional physical infrastructure - such as roads, water supply, power grids, logistics and housing - with digital technologies like IoT sensors, SCADA systems, smart meters, integrated command and control centres (ICCCs) and digital twins. Under the Smart Cities Mission (SCM), the Government of India sanctioned ₹48,000 crore for 100 cities, with over 8,000 projects, while complementary programmes such as PM Gati Shakti, AMRUT 2.0 and the National Smart Metering Programme (targeting 25 crore smart meters) reflect the scale and policy focus.
  • The sector spans a wide value chain: physical infrastructure to digital utilities and sensors to data platforms and to smart service delivery. Key use cases include intelligent streetlighting, waste-to-energy systems, multimodal logistics hubs and greenfield smart cities like Dholera Industrial City and GIFT City. These projects demand high capital, technological integration and coordination across multiple stakeholders.
  • Smart infrastructure presents a strategic opportunity with rising investments in logistics parks, smart utilities, ICCCs, and urban housing. With growing industry participation and improving revenue models such as user charges, PPPs, and municipal bonds, the sector is positioned to drive the next wave of technology-enabled, sustainable urban development.
  • Under the ‘Smart Cities Mission’, projects worth over ₹1.64 lakh crore have been completed across 100 cities. All 100 cities have operationalized ICCCs, which support data-led decision making and aid over 84,000 CCTVs for public safety. India has commissioned ~228 MWs of Waste to Energy capacity in the last decade. In logistics, efficiency is being transformed through 35+ planned Multimodal Logistics Parks (MMLPs) as part of Bharatmala Pariyojana, with investment of ₹46,000 crores with projects already awarded for 5 MMLPs.
  • "It's been #11YearsOfInfraRevolution, with outstanding infrastructure being added that has enhanced India's growth trajectory. It's a journey where steel and spirit merge, and each milestone carries the hopes of a billion. Highways that shorten distances, bridges that unite communities, and digital networks that spark innovation - India is building more than infrastructure. It's building confidence, connectivity and a beautiful canvas for every Indian dream," - Shri Narendra Modi, Hon’ble Prime Minister of India, 2025

Last Updated On : Friday, 30-01-2026

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