“Renewable energy costs and material needs must not be underestimated, we must go into it with open eyes”: CEA in Economic Survey

At the Economic Survey 2026 press briefing, Chief Economic Adviser V.A. Anantha Nageswaran urged caution and realism while discussing India’s push towards renewable energy, saying the transition must be planned with a full understanding of its material and energy demands.

Speaking during the live briefing, Nageswaran said renewable energy will become an important part of India’s energy mix in the coming years. He said, however, that the scale of resources required to build renewable capacity must not be underestimated. According to him, policymakers and the public must go into the renewable transition with open eyes.

He explained that large-scale renewable energy needs huge amounts of raw materials such as metals, minerals, and components, along with substantial energy input for manufacturing, transportation, and installation. He said these upstream requirements often get ignored in public debates, leading to an incomplete picture of the true cost of renewable energy.

Nageswaran said that as renewable energy expands, India must also think about where these materials will come from and how secure those supply chains are. He linked this concern to the broader global environment, where trade is no longer neutral and supply chains face frequent disruption. In this context, he said domestic manufacturing capability becomes critical.

The Chief Economic Adviser connected the renewable energy discussion with the idea of Swadeshi. He said India should not hesitate to rely on domestic production in the current global situation. Building renewable energy infrastructure at home, he said, reduces dependence on imports and strengthens economic resilience. He added that Swadeshi is not about rejecting global trade but about ensuring India has the capacity to meet key needs on its own terms.

Nageswaran also said India’s energy transition will happen alongside rising consumption. As incomes rise and the economy grows, energy demand will increase. He said India is expected to move towards a per capita income level of $20,000 over the next 25 years, which will push demand for power, transport, and infrastructure. This makes careful planning of renewable energy even more important.

He made it clear that renewable energy is necessary for India’s future but said the transition must balance ambition with practicality. According to him, understanding costs, material needs, and supply risks is essential for a sustainable and secure energy shift.

The remarks signal that the Economic Survey views renewable energy not just as a climate issue, but as a strategic economic and industrial challenge that requires strong domestic capacity and long-term planning.

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