India has emerged as a global front‑runner in digital readiness for energy efficiency, with adoption levels hitting 80%, well above the global benchmark of 67%, according to a new ABB report surveying 2,700 senior industrial leaders across 15 countries.
Despite this strong digital foundation, the report reveals that many Indian industrial organizations continue to struggle with execution gaps, preventing them from fully realizing the benefits of energy‑efficiency investments.
India Leads in Investment but Faces Execution Barriers
The study found that 64% of Indian industrial players have already invested in energy‑efficiency initiatives, and an additional 32% plan to do so within the next 12 months one of the strongest forward‑looking indicators globally.
Energy remains a critical cost factor, consuming 28% of operating expenses. Rising energy costs are seen as a major profitability threat by 72% of Indian companies, far higher than the global average of 59%.
“The next wave of competitiveness in India will be won by companies that close the execution gap—turning data, digital readiness, and intent into continuous operational efficiency.”
— Amit Gupta, Local Division President, Motion Services, ABB India
Yet, challenges have shifted. Instead of cost constraints, organizations now face barriers such as:
- 42% citing workforce resistance to new technologies
- 42% reporting lack of specialist resources
- 41% pointing to digital‑skills gaps
ABB notes that fragmented internal ownership spread across operations, sustainability, finance, and maintenance further dilutes accountability for energy‑efficiency outcomes.
Intent Is High, but Execution Lags
While India demonstrates strong readiness to deploy digital energy‑management tools, only 41% of companies consistently use total cost of ownership (TCO) as a decision‑making framework, despite 80% acknowledging its importance.
“The challenge is no longer ambition or funding it is execution,” said Amit Gupta of ABB. “Data, digital skills, and organizational alignment will determine which companies convert intent into sustained results.”
Renewables Are Not a Substitute for Efficiency
The report warns of growing “post‑renewables complacency.” Among Indian companies already using renewable energy sources (42%), 36% admit a reduced focus on energy efficiency highlighting untapped opportunities to strengthen resilience and lower long‑term costs.
When asked about primary motivations for efficiency investments, companies cited cost reduction (53%), carbon footprint reduction (43%), and competitiveness and resilience (40%).
Closing the Gap
ABB says the next industrial advantage will come from execution capability, supported by diagnostics, modernization of motor‑driven systems, software‑enabled optimization, and lifecycle services.
“Efficiency is no longer a one‑off exercise it is a continuous, data‑driven discipline,” Gupta added.