The Relevance of the Energy for the Indian Economy

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The Relevance of the Energy for the Indian Economy


Robust Growth with Energy at the Core

India's structural growth story is robust, with energy playing a major role in achieving its growth targets. Energy demand is expected to rise over the next decade, driven by factors such as climate change, premiumisation, a focus on manufacturing, and increasing per capita income. Numerous companies are involved in the energy value chain, offering opportunities for a diversified portfolio.

Long-Term Investment Opportunities

This decade-long theme favors long-term investments, making it suitable for investors with a long-term horizon to invest in the scheme.

Key Segments in the Energy Value Chain

  1. Power Ancillaries: This includes energy EPC (Engineering, Procurement, and Construction), power T&D (Transmission and Distribution), heavy electrical equipment, and energy efficiency plays (manufacturing electrical equipment for production, transmission, and distribution of energy).
  2. Oil Value Chain: This segment encompasses upstream activities such as oil exploration and production, integrated refining and marketing (refineries and marketing), standalone refining, downstream petrochemicals (chemicals and petrochemicals companies), base oil processors, lubricants, and oil field services (oil equipment and services).
  3. Green Energy: This includes companies undergoing energy transitions, as well as those involved in the solar, wind power, hydrogen, and battery value chains. It also covers the bioenergy value chain and companies producing alternate fuels.
  4. Gas Value Chain: This segment includes gas transmission and marketing, LNG terminals (LPG/CNG/PNG/LNG suppliers), and city gas distribution.
  5. Power Value Chain: This includes coal producers, power generation, power transmission, and power trading.

Conclusion

The energy theme is highly relevant for the Indian economy, driven by structural growth and increasing energy demand. The diverse segments within the energy value chain offer a broad range of investment opportunities, making it an attractive option for long-term investors. As India continues to grow and evolve, the role of energy in powering this growth cannot be overstated.







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