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India Drops in Energy Transition Index 2025: What It Means

The World Economic Forum (WEF) has released the Energy Transition Index (ETI) 2025, which ranks countries based on their ability to transition from fossil fuels to clean energy. India's ranking has dropped from 63 (in 2024) to 71 (in 2025).


What is the Energy Transition Index (ETI)?

  • Released by: World Economic Forum (WEF)

  • Objective: To assess countries’ progress and preparedness for energy transition.

  • Scoring Range: Countries are scored on a scale of 0 to 100 using 43 indicators.


ETI Ranking Parameters

  1. System Performance

    • Energy Security

    • Energy Equity (access & affordability)

    • Environmental Sustainability

  2. Transition Readiness

    • Regulation

    • Infrastructure

    • Investments

    • Human Capital

    • Political Commitment


Key Rankings 2025

  • Top Performers:

    • 1st: Sweden

    • 2nd: Finland

    • 3rd: Denmark

    • 4th: Norway

  • India’s Performance:

    • Rank 71 in 2025

    • Down from 63 in 2024, highlighting issues in investment, infrastructure, or sustainability.


Implications for India

  • Indicates challenges in energy infrastructure and policy implementation.

  • Slippage may affect international climate commitments and clean tech investments.

  • Calls for stronger action on renewables, energy efficiency, and policy frameworks.


UPSC Relevance

  • GS Paper 3: Environment, Infrastructure, Energy

  • GS Paper 2: Government policies and interventions for development in energy sector

  • Prelims: International Indices, WEF, Clean Energy Transition


UPSC Prelims Question

Q. With reference to the Energy Transition Index (ETI), consider the following statements:

  1. It is released by the International Energy Agency (IEA).

  2. It measures both energy system performance and transition readiness.

  3. India’s ranking improved in 2025 as compared to 2024.

Which of the statements given above is/are correct?

A. 1 and 2 only

B. 2 only

C. 1 and 3 only

D. 2 and 3 only


Answer: B. 2 only

Explanation:

  • Statement 1 is incorrect: ETI is released by the World Economic Forum (WEF), not IEA.

  • Statement 2 is correct: It assesses system performance and transition readiness.

  • Statement 3 is incorrect: India’s rank dropped from 63 to 71.


UPSC Mains Question (GS Paper 3)

India has dropped in the 2025 Energy Transition Index released by WEF. Examine the reasons for this decline and suggest measures India should adopt to accelerate its energy transition.


 
 
 

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