The digital leap in India is no longer at its nascent stage, and the nation is swiftly positioning itself as a powerhouse of the digital economy, with the IT and digital industries leading the charge toward a seamless transition. The industry has grown significantly due to the shift from legacy systems to modern digitised processes. Over the years, India’s IT industry has expanded its capabilities and achieved remarkable milestones. It has grown at a CAGR of more than 15 per cent, from $196 billion to over $225 billion in FY22. If this growth trajectory continues, the IT industry is expected to reach approximately $394 billion by 2027. 

Advertisment

While the government has made considerable progress in its efforts to achieve the vision of a $1 trillion digital economy, much more needs to be done. To reach this goal, significant investments in digital transformation are necessary, with a targeted 25 per cent CAGR to establish India as a $687 billion IT giant by 2027, bringing the country closer to the $1 trillion milestone by the end of the decade. 

Digital transformation in India’s energy sector 

India’s energy landscape is undergoing a profound transformation, driven by the Aatmanirbhar Bharat vision and strategic policy initiatives. As the third-largest global energy consumer, India faces the challenge of meeting its growing energy demand while ensuring sustainability and security. Rapid urbanisation, industrial expansion, and economic growth have led the government to introduce key initiatives such as the National Green Hydrogen Mission and Production-Linked Incentive (PLI) schemes for solar photovoltaics (PV), battery storage, and other clean energy technologies. 
 
India's role in the global energy transition is pivotal. Its growing population, rising energy needs, and strong economic growth make its energy journey critical not just for itself but for the world. India’s goal to achieve a developed nation status by 2047 under the ‘Viksit Bharat 2047’ plan, its commitment to providing clean energy sources to its citizen becomes paramount.  The past decade (2013–2023) marked significant progress in India's clean energy transition. The country became the fourth-largest electricity consumer and the third-largest renewable energy producer globally. 

Advertisment

The transition to low-carbon energy requires integrating technology and data-driven insights across industries. Emerging trends such as deep decarbonisation of hard-to-abate sectors, sustainable cooling solutions, advanced weather forecasting for agriculture, and robust energy supply chain modeling will define India’s future energy landscape. 

By integrating digital technologies and artificial intelligence, India can develop smarter cities, optimise energy use, and advance long-term sustainable solutions. Virtual twin technology and AI-driven simulations are further transforming infrastructure planning, improving operational efficiency, and accelerating the transition to clean energy. Through development of efficient energy system, manufacturing, operations and maintenance, Indian energy companies can align with government policies while driving long-term sustainability and global competitiveness. 

India’s energy mix continues to shift towards cleaner sources. While conventional energy sources such as thermal and nuclear power remain significant, the government has placed strong emphasis on renewable energy, particularly solar, wind, and hydroelectric power. The country’s commitment to achieving net-zero carbon emissions by 2070 has catalysed major investments in green energy projects, decarbonisation initiatives, and grid modernisation efforts. 

Advertisment

With energy security being a national priority, fostering self-reliance in manufacturing critical energy components is essential. The PLI schemes for solar PV modules and battery storage aim to reduce dependency on imports while strengthening domestic capabilities. Similarly, the National Green Hydrogen Mission positions India as a global hub for hydrogen production, storage, and utilisation, unlocking new opportunities for clean energy adoption. 

Leveraging Digital Solutions for Energy Optimisation 

Traditionally, the energy sector has been slow in adopting digital technologies, but recent advancements have triggered a paradigm shift. Virtual twin technology that mimics the real world energy assets and operations, is now enabling energy companies to design, simulate, and optimise infrastructure before real-world implementation. 

In the solar and wind energy sectors, virtual twin technology is playing a crucial role in driving efficiency and innovation. AI-driven simulations are enabling engineers to design and optimise solar panels and wind turbines by testing their performance under diverse environmental conditions, ensuring long-term durability and maximum energy output. Additionally, digital models replicate real-world behaviour, allowing predictive analytics to anticipate maintenance needs. This proactive approach reduces downtime, enhances operational efficiency, and extends the lifespan of critical energy assets. Moreover, by integrating virtual twins with manufacturing and logistics, companies can improve production efficiency and build in resilience in supply chain for optimised sourcing and distribution of material. This convergence of digital innovation and renewable energy infrastructure is helping India build a more self-reliant and sustainable energy ecosystem. 

Furthermore, AI-driven virtual twins are transforming energy storage and grid management. Advanced analytics can monitor operational parameters of energy storage systems, predict anomalies, and optimise energy distribution to balance demand and supply effectively. These innovations not only reduce costs but also enhance reliability, crucial for India’s ambitious renewable energy targets. 

Strengthening Atmanirbhar Bharat through digital collaboration 

India’s energy transition is not solely a governmental effort; it demands active collaboration among industries, research institutions, and technology providers. Companies specialising in virtual twin experiences are playing a pivotal role in this transformation by offering advanced simulation tools for product development, operations, and predictive maintenance. Digital platforms are enabling smart energy management for utilities and industrial players, where AI-powered grid monitoring ensures seamless integration of renewable energy with conventional power grids. In the nuclear sector, virtual simulations are expediting the design and safety assessment of small modular reactors (SMRs), a promising solution for localised energy needs.  
 
Additionally, innovations in battery technology are being driven by digital tools that assist in developing advanced chemistries and improving performance, which is crucial for India's electric vehicle (EV) ecosystem and energy storage capabilities. By leveraging these digital advancements, India is strengthening its path toward a more resilient, efficient, and self-reliant energy future. 

As Prime Minister Narendra Modi envisions the next 25 years as India’s ‘Golden Era’ of development, the energy sector is poised for unprecedented advancements. The integration of AI, IoT, and smart meters will redefine energy consumption patterns, enhancing efficiency and reducing wastage. Smart grid solutions will optimise power distribution, minimizing losses and ensuring uninterrupted energy supply for industries and consumers alike. 

Startups are playing a crucial role in this transformation, particularly in the renewable energy and EV ecosystem. Innovations such as ultra-fast battery charging, AI-powered energy optimisation, and localised renewable energy solutions are emerging from India’s dynamic startup ecosystem, reinforcing the Aatmanirbhar Bharat vision. 

India’s energy transformation is a testament to its commitment to self-reliance, sustainability, and technological advancement. With government-backed policies fostering local manufacturing and clean energy adoption, digital solutions like virtual twin technology and AI-driven simulations are accelerating innovation in the sector. As India marches towards a resilient and data-driven energy future, the convergence of policy, technology, and industry collaboration will ensure a sustainable, efficient, and globally competitive energy ecosystem. 

By embracing digital transformation, India is not just securing its energy independence but also positioning itself as a leader in the global clean energy transition. 

{Author is Praveen Mysore, INDIA Industry Consultant Senior Director, DASSAULT SYSTEMES India}