The growing cooling sector in India provides a USD 1.6 trillion investment opportunity, adds that World Bank Country Director for India Auguste Tano Kouame
The Bureau of Energy Efficiency (BEE), operating under the Ministry of Power, has recommended the replacement of air conditioners older than eight years with modern and efficient cooling systems to achieve a substantial reduction in carbon emissions by 2030–31, as stated in an official release.
During a workshop on mitigating heat stress through the promotion of affordable cooling devices (AHEAD), organised by the Department for Promotion of Industry and Internal Trade (DPIIT) in collaboration with the World Bank, Abhay Bakre, the Director General of BEE, underscored the importance of upgrading outdated air conditioners to 5-star-rated, energy-efficient systems.
Bakre also stressed the promotion of cold chain technologies tailored to specific products and the implementation of district cooling systems. Challenges identified by cold chain players included the absence of appropriate standards for technology and operations, as well as insufficient demand from end consumers and value chain participants.
Auguste Tano Kouame, the World Bank Country Director for India, highlighted a significant $1.6 trillion investment opportunity in India's growing cooling sector. The workshop aimed to address domestic manufacturing challenges and explore innovative policy and financing strategies, positioning India as a global manufacturing hub for cooling devices.
The statement emphasised the adoption of global best practises, research and development, and the production of high-quality cooling devices to enhance India's competitiveness in the global market. The workshop also emphasised the potential for attracting investments and creating green jobs in the cooling sector.
Sanjiv, Joint Secretary of DPIIT, assured that the inputs gathered during the workshop would be diligently explored to collectively establish India as a global hub for manufacturing sustainable cooling devices. The event, attended by over 100 industry stakeholders, was deemed a crucial step in fortifying India against escalating heat waves through sustainable and affordable cooling solutions.
Recognising the need for cost-effective, domestically-led technologies to ensure affordability for the vast Indian population, the workshop addressed the expected tenfold increase in overall cooling demand over the next two decades due to increased global warming and purchasing power.
According to the workshop findings, interventions in the cooling sector could potentially save 4.5 percent of the GDP, amounting to nearly USD 329 billion, mitigating risks associated with heat waves by 2030. The statement highlighted that India spent almost a billion USD in 2022–23 on importing cooling device components and emphasised the value of local production to meet the country's growth and potentially become a global hub for cooling device manufacturing.