India should diversify its manufacturing from IT to increase energy security: Enso Group MD Vaibhav Maloo

Positioning India as a manufacturing hub for the rest of the world is a challenge that first requires overcoming certain structural issues, such as energy security, bureaucracy, currency fluctuations, and several others. India’s journey towards becoming a global leader in manufacturing and energy was discussed by Vaibhav Maloo, Managing Director of Enso Group. According to him, India has immense potential to become an independent manufacturing nation, especially in sectors such as semiconductor manufacturing.

Maloo commented, “India holds immense promise when it comes to semiconductors and electronic fabrication. We have to create a start-up culture that transcends IT and promotes capital-intensive manufacturing sectors. Although there is huge scope for growth in this sector, hurdles such as red tape and fluctuating currency values still remain.”

Drawing attention to the positive effects of reforms on India’s business environment, Maloo referred to the contribution made by the Jan Dhan Yojana in achieving greater financial inclusivity.

“The initiative has been successful in bringing virtually all Indians into the fintech and banking ecosystem, thereby giving companies a wider customer base,” he added.

However, he stressed that increasing the level of FDI and FII would require stronger confidence in India’s governance structure.

“Foreign investors need confidence in the judicial system, policing, and government institutions so that they can invest without fear. This must go hand in hand with India’s continued efforts to improve the quality of goods and services,” he concluded.

According to Maloo, industries such as education and energy continue to remain relatively underdeveloped despite offering strong long-term growth prospects.

“India should have more world-class schools and universities. There is still enormous untapped potential in the education sector,” he said.

Regarding energy, he maintained that insufficient investment had restricted the country’s capabilities, especially at a time when energy consumption continues to rise alongside economic growth.

Strategic Planning is Critical to Achieving Energy Security

Maloo, drawing from his experience in the energy sector, stressed the importance of adopting a more aggressive approach towards energy security.

In his view, India must enter into more long-term agreements for oil off-take, strengthen efforts in oil and gas exploration, and expand its crude oil and LNG storage facilities.

“More geological studies, both offshore and onshore, will be required to discover our own resources,” he added. “India must also build up its capacity to store liquefied natural gas and crude oil.”

Transitioning from Conventional Energy towards Renewable Sources

According to Maloo, conventional power companies will continue to play a vital role in India’s clean energy transition, particularly as renewable energy becomes more integrated into the country’s power ecosystem.

He identified solar energy as one of the most promising sectors, especially in northern India, where sunlight availability remains high throughout the year. Wind, tidal, and nuclear energy were also highlighted as important future sources of energy for the country.

“Renewable sources are indispensable for the country’s future, considering India has limited reserves of fossil fuels. Nuclear energy also has significant potential in meeting rising energy demands,” he stated.

While acknowledging that efforts are already underway to promote renewable energy adoption, Maloo argued that India must accelerate its transition.

“Renewable energy sources are clean and are becoming increasingly cost-efficient. However, the challenge is that adoption often takes place only after these technologies have matured elsewhere. India must learn to adopt energy solutions before they become mainstream globally,” he added.

As India moves towards becoming a developed nation and a global manufacturing leader, Maloo emphasized that the country must ensure its industrialisation drive does not compromise energy security or the reputation of its educational institutions.