Coal Still Powers India, But Renewables Are Catching Up Fast
India is betting big on clean energy while coal continues to dominate its power grid, and the rupee is sliding toward record lows as global tensions push energy costs higher.
India is the world's fastest-growing major economy, but it is running on two tracks at once. Coal remains the backbone of its electricity supply, even as the country adds solar and wind power faster than almost any other nation [259396]. The result is a mixed picture: the old energy system still rules, but the new one is rising quickly.
The shift is not simple. Renewable electricity is now cheaper than ever, and some of the world's poorest countries are adopting solar, wind, and water power faster than Europe or the United States [257097]. India is part of that wave.
Meanwhile, the rupee is in freefall. India's central bank has stepped in to support the currency as it slides toward record lows [259289]. The pressure comes from rising energy costs linked to the US-Israel conflict with Iran, which is weighing on the currency of the world's fastest-growing major economy [259289].
India also holds a rare dual role at the New Development Bank, created by the BRICS nations — Brazil, Russia, India, China, and South Africa [255358]. It is both a founding member and one of the bank's largest borrowers. The bank funds infrastructure and sustainable development projects, and India receives significant financing for its own projects while helping shape the bank's direction [255358]. The bank has drawn little public attention, yet it has steadily delivered [255358].