At least 20-30 new Indian companies in the energy and tech space will become as big as Reliance: Mukesh Ambani

India will emerge a global new energy leader with many new Indian companies in the energy and tech space poised to grow as big as Reliance, if not bigger in the next couple of decades, according to Reliance Industries Chairman and Managing Director Mukesh Ambani.

In a fireside chat with Raghunath Anant Mashelkar, President, Pune International Centre at the Asia Economic Dialogue, Ambani said, “I have immense faith in the ability of our young entrepreneurs. They are highly ambitious and highly talented, and I’m fortunate to see a lot of them in action all-around. I foresee at least 20-30 new Indian companies in the energy and tech space which will grow as big as Reliance, if not bigger, in the next 10-20 years.”

Climate crisis

Ambani shared his views on the climate crisis and the need to shift to new energy, further talking about India’s potential as a global new energy leader.

“The world must make a rapid transition from old energy to new energy, which is necessary for mankind’s larger transition from an industrial revolution to an ecological or Earth-friendly revolution,” Ambani said.

“India will lead this transition from fossil fuels to green and clean energy and become major resource of solar and hydrogen energy in the coming decades. It’s an opportunity worth seizing as we march from the 75th anniversary of India’s Independence to its Centenary in 2047,” he said.

Key growth factors

Detailing the key reasons contributing to India’s growth in the space, Ambani said, “India is a country full of entrepreneurial spirit, innovation and youth. We now have proactive and forward-looking policy support and action from the government, both at the central and the state level. Our entrepreneurs now have assured financing options.”

Talking about new Indian companies in the energy and tech space scaling over the next couple of decades, Ambani said, “It took Reliance about 15 years to become a $1-billion company. And 38 years to touch a $200-billion company. I have no doubt that the next generation of Indian entrepreneurs will achieve this in half the time. What this also means is that India’s community of entrepreneurs will become broader and wealth creation will also become more inclusive.”

He further added that by 2030, he expects India’s technology and digital exports to exceed half a trillion dollars.

“Similarly, India’s clean and green energy exports in the next 20 years also has the potential of half a trillion dollars of export. If the last 20 years, we were known for India’s emergence as an IT superpower; next 20 years, I believe, along with technology, will mark our emergence as a superpower in energy and life sciences,” he said. 

“What is commendable is that the new energy businesses in India are standing on their own two feet, with their own entrepreneurship, and very little support of or basis of any great government subsidies. Technological progress will make energy affordable on the basis of commercial viability; and it will be technology, and the entrepreneurial spirit, and the new business model that gives values to customer that will drive the business and not government subsidies. And that’s encouraging about the new energy opportunities that I see,” he said. 

On financing

He further added that the government has been proactive in meeting the financing needs of new energy sector, highlighting the recent announcement in Union Budget about the launch of Sovereign Green Bonds as a step in that direction.

“India aims to achieve 500 GW of renewable power capacity, which I am sure we will meet. So, right now on the basis of what I see, I am very optimistic,” he said. 

Economic development and energy demand

Ambani further discussed the potential of overall economic development and the role of green energy over the next couple of decades.

According to Ambani, as the “21st century will be Asia’s Century,” India is likely to overtake Japan as Asia’s second-largest economy, and the world’s third-largest economy, by 2030.

“Asia is leading the march towards a more inclusive global economy,” he said. 

“India’s per capita income today is around $2,000, compared to Europe’s $38,000.

I believe that with our progress, we will reach $10,000 per capita in the next 15-20 years. 

This will increase our energy demand. And at the same time, we will be able to meet our incremental energy at affordable rates because of the progress that we are making in technology, because of the abundance of renewable resources that nature has blessed our country with,” he said.

“So, I believe that India will be among the fastest-growing large economy and our energy needs are going to double in the next couple of decades,” he further added. 

Key challenges

He also highlighted certain challenges that India will need to address in terms of the shift towards green energy. 

This includes increasing energy output to drive double-digit GDP growth and doing it at an affordable basis of the use of technology. 

It must also increase the share of green and clean energy in this enhanced output as well as achieve the goal of ‘Self-reliance or Aatmanirbhar Bharat’ in pursuing these challenges, Ambani said.

Dependence on coal, oil

According to the RIL Chairman, India’s dependence on coal and imported oil will continue in the next two to three decades.

“But, we must have a plan to eliminate that in the next two-three decades. Hence, in the near and medium-term, we will have to follow low carbon and no carbon strategies of development,” he said.

“We really believe that in the next one decade, we have to make sure that all these technologies will bring the cost of green hydrogen at a dollar per kilo and make sure that we transport and disburse it also at less than a dollar per kilo thereafter. I have always believed that aiming high and failing is allowed, but aiming low is not allowed, so that was the reason behind this impossible goal and as we work on it, it doesn’t look that impossible and I think we will be able to do all this plus or minus 20 per cent,” he said. 

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