By: Mohit Gupta, Project Manager, International Copper Association India
In the larger puzzle of electrification, efficiency is just as important a piece as generation. India’s peak power demand is projected to reach 817 GW by 2030, as per the data shared by the Central Electricity Authority (CEA). While the country has already crossed 300 GW of non-fossil fuel-based installed electricity generation capacity as of 31 July 2026, 78% of actual electricity generation is still achieved through fossil fuels, implying that smart energy use remains important for the country’s decarbonisation goals. The scale of the energy demand and generation makes it clear that India’s energy future will depend not only on producing more electricity but on using every unit of it more efficiently.
The need for efficiency is even greater in industries, which consume nearly 42% of the national total power, with motors alone accounting for almost 70% of consumption. Motors are at the heart of industrial operations, running machines, pumps, fans, compressors and conveyors for 12 to 14 hours a day. With India on the path to becoming a developed nation, there will be greater demand for goods, commodities and equipment, which will drive industrial growth and increased electricity consumption. Improving motor efficiency must therefore become a priority for industries looking to reduce power consumption, lower costs, and improve overall efficiency.
Electrification needs efficient motors
The choice of motor can have a significant impact on how much electricity is ultimately converted into useful work. The difference becomes clear when efficiency levels are compared.
An IE2 motor of 7.5 Kw converts about 88.1% of the electricity it consumes into useful work, compared with 90.1% for an IE3 motor, while IE4 motors achieve efficiencies of 91.7%. The relative difference in efficiency values result in big energy savings when calculated collectively for multiple motors for thousands of operating hours a year.
India currently mandate IE2 as the minimum efficiency standard. The country moved from lower-efficiency IE1 motors to IE2 motors in October 2017 to reduce industrial power consumption and carbon emissions. IE2 was an important step forward, but it has been nearly a decade since the country last upgraded its minimum efficiency standard.
Meanwhile, motor technology has moved ahead. The market now offers more efficient motors, including IE3, IE4 and IE5, that can deliver greater energy savings and lower operating costs. Major economies, both developed and developing, have adopted higher efficiency standards, while India remains at the minimum. This leaves a gap between policy, market trends and available technology, raising an important question: is it time for India to reconsider its motor efficiency standards?
Higher efficiency has become the global norm
IE2 is no longer the benchmark. The world has already moved to IE3 and higher-efficiency motors. In the European Union, electric motors are required to meet IE3 standards as the baseline to cut industrial power consumption and carbon emissions. This requirement became fully applicable for motors in 2021. Similarly, in the USA, IE3-equivalent efficiency is mandatory for most general-purpose electric motors since 2015. Japan also did it in 2015, and China followed in 2021, paving the way for a more energy-efficient and competitive industry.
Even developing countries such as Brazil, Colombia, Egypt and others have made IE3 motor standards mandatory. Of the 57 countries that currently have mandatory industrial motor MEPS, 45 are at the IE3 level. It has become the baseline in major industrial economies. IE4 and IE5 motors are also commercially available and seeing widespread adoption, reinforcing that advanced technology is not limited to the world’s most advanced economies.
India’s continued reliance on IE2 therefore increasingly represents a policy gap rather than a technological limitation. Indian manufacturers are already capable of producing IE3, IE4 and higher-efficiency motors, while their adoption is gradually increasing across the market. The challenge is that regulation has not kept pace with either technological capability or market readiness. A clear policy pathway towards IE3 could therefore accelerate a transition that industry is already beginning to make.
Higher standards, lower emissions
With India aiming to achieve net zero by 2070, raising efficiency standards can offer a smarter path to decarbonisation. Efficient motors are low-hanging fruit that can make a relatively immediate contribution to cutting energy use and reducing emissions across industries. Around 3.5 million motors are sold in India each year, with a total rated power of 25.6 GW. Of these, 55% are IE2 motors, while 41% are IE3 and 4% are IE4. The share of IE3 and IE4 motors is increasing each year. This shows that the industry has a positive intent towards higher-efficiency motors, and policy support can speed up this transition. This represents an enormous opportunity that India cannot afford to overlook.
Upgrading to IE3 standards can reduce close to 1.4 million tonnes of CO₂ annually, while also lowering electricity consumption by 1.5–2 TWh for industries.
This opportunity also aligns with India’s broader push for energy efficiency. The Bureau of Energy Efficiency (BEE) is working to accelerate the country’s annual rate of energy intensity improvement, in line with the G20 and COP28 goal of doubling the pace of energy efficiency progress by 2030. Improving motor efficiency can be a practical and immediate step towards this goal, cutting carbon emissions while improving industrial productivity and reducing energy costs.
The policy should be predictable and phased, giving manufacturers and industries enough time to adapt, plan investments and transition to higher efficiency standards without sudden cost pressures.
A motor’s true cost goes far beyond its purchase price. With the initial cost accounting for only 3–5% of its lifecycle cost, while energy and maintenance account for 95–97%, efficiency is fundamentally an economic decision, not just an environmental one. Strengthening minimum energy efficiency norms can help India accelerate its energy efficiency and decarbonization goals, while delivering lower operating costs for end users, reduced emissions for the environment, and greater global competitiveness for Indian OEMs.