Accelerating India%E2%80%99s Energy Transition through Industrial Clusters 2025

Accelerating India’s Energy Transition through Industrial Clusters INDIA BRIEFING PAPER APRIL 2025 Industrial clusters are geographic hubs of co-located businesses and public institutions that act as engines of economic growth, fostering collaboration, resource-sharing, access to skilled labour and innovation, thereby enhancing competitiveness and regional economic resilience. The World Economic Forum’s Transitioning Industrial Clusters initiative, in collaboration with Accenture, is driving collaboration and shared action to foster economic growth, protect and create jobs, and reduce CO2e emissions in industrial clusters. With 33 clusters1 across 16 countries, this initiative represents $492 billion in GDP contribution and 4.3 million jobs, while targeting 832 million tonnes of CO2e reduction – equivalent to Saudi Arabia’s annual emissions.2 By fostering public-private partnerships, supporting policy frameworks, and enabling access to finance and technology, the initiative provides a structured pathway for industrial hubs to transition while enhancing global competitiveness. Key areas of focus include scaling clean energy adoption, integrating circular economy principles, and leveraging breakthrough technologies like hydrogen and carbon capture solutions. In India, the initiative has been collaborating with five key industrial clusters in five states, including the Mumbai Green Hydrogen Cluster in Maharashtra, Mundra Cluster in Gujarat, Kerala Green Hydrogen Valley in Kerala, Gopalpur Industrial Park Cluster in Odisha, and Kakinada Cluster in Andhra Pradesh. These clusters demonstrate India’s commitment to the energy transition through innovation and collaboration. Together, they are projected to generate tens of thousands of jobs, significantly reduce CO2e emissions, and contribute billions to India’s GDP . This briefing paper explores India’s evolving energy landscape, identifies key challenges and examines how the country’s industrial clusters can accelerate the energy transition and broader industrial transformation, while also contributing to economic growth and social development. Balancing energy demand and energy transition goals As the world’s third-largest energy consumer with a rapidly growing economy, India faces the dual challenge of meeting an expected 35% increase in energy demand by 20303 while advancing its commitment to achieve net-zero emissions by 2070.4 This task demands bold, transformative strategies that balance equitable economic growth, energy security and sustainability. India’s energy transition and decarbonization efforts are not just essential for global climate goals, but also for ensuring energy security, improving air quality, fostering economic growth and promoting equitable social impact. By driving clean energy investments, India can create green jobs, expand energy access and foster inclusive growth, ensuring that this transition benefits all. Coal is the dominant source in India’s energy mix, accounting for nearly 70% of electricity generation,5 which means the transition to renewable energy will need careful planning. The industrial sector, which contributes to over 30% of GDP6, is also responsible for 24%7 of total emissions, making industrial transformation vital for India to achieve its net-zero goal by 2070. For industries navigating the dual challenge of maintaining profitability and reducing emissions, industrial clusters offer a scalable model to accelerate transition at speed and scale, supporting an inclusive and resilient economic growth. IntroductionIn collaboration with Accenture