Appliance innovation is key to India’s energy efficiency goals: Kamal Nandi of Godrej Enterprise Group

India’s rising appliance use demands smarter, energy-efficient technologies to balance rising household comfort with environmental responsibility and long-term sustainability goals
12/12/2025
2 mins read

India today stands at a defining moment in its development journey. With its sights set on becoming a Viksit Bharat by 2047, the country is undergoing rapid economic expansion, widespread urbanisation and rising household aspirations. As incomes grow and lifestyles evolve, appliances such as air conditioners, refrigerators and washing machines once considered aspirational purchases have become everyday necessities. Climate change only amplifies this shift, with intensifying temperatures driving demand for cooling solutions across cities, small towns and even rural regions.

Yet behind this socio-economic progress lies a growing concern. India’s residential energy consumption is rising sharply. According to the Bureau of Energy Efficiency (BEE), households consume 24 per cent of the country’s electricity—making them the second-largest energy consumer, with demand increasing at an annual rate of 6 per cent. This surge is largely driven by the proliferation of home appliances. While this reflects improving living standards, it also places immense responsibility on the appliance industry, the government and consumers to ensure that growth does not undermine sustainability.

A crucial role for the appliances sector

The home appliances industry sits at the heart of India’s energy-efficiency ecosystem. The choices made by manufacturers today on technology, design, refrigerants and manufacturing processes directly influence India’s climate trajectory. Encouragingly, the industry has embraced several critical shifts.

One of the most important transitions is the adoption of environment-friendly refrigerants. Many brands, including Godrej, have moved to green alternatives such as R600a in refrigerators and R32 in air conditioners, significantly reducing global warming potential. Godrej has further advanced the sector by adopting R290, the world’s most eco-friendly refrigerant, in deep freezers and select AC models.

Rising standards and smarter technologies

Energy ratings play a major role in helping households reduce their electricity consumption. With BEE set to tighten its energy norms from January 2026, the market is moving decisively towards higher-rated appliances. The impact is substantial. A 5-star split AC can reduce annual power consumption by nearly 30 per cent compared to a 2-star model, while 5-star refrigerators can cut energy costs by 35–45 per cent depending on type.

The shift towards premium and technologically advanced appliances is also accelerating energy savings. Inverter technology is now a staple in modern refrigerators, washing machines and air conditioners. These appliances optimise energy use by adjusting performance based on load, temperature or usage conditions, ensuring that full capacity is used only when necessary.

Convertible appliances represent another leap forward. For example, 5-in-1 convertible ACs allow users to switch between cooling levels based on occupancy, saving up to 70 per cent energy. Convertible refrigerators offer similar advantages through flexible compartment settings and holiday modes.

The integration of AI-powered features is strengthening this shift. Smart refrigerators adjust cooling patterns based on food load and door-opening frequency. Intelligent washing machines optimise wash cycles to minimise water and energy use, while smart ACs with filter-cleaning reminders help maintain peak efficiency and can cut electricity consumption by up to 20 per cent.

Responsibility beyond innovation

While advanced technology is crucial, regular maintenance is equally important. Proper servicing ensures appliances operate efficiently throughout their lifespan. Consumer awareness and responsible usage behaviours—from cleaning AC filters to choosing the right energy-rated products—are essential for maximising sustainability benefits.

Equally vital is the industry’s investment in R&D, localisation and green manufacturing. Building energy-efficient products, reducing import dependency, and adopting environmentally responsible production practices are not just market expectations—they are national imperatives.

A shared path towards sustainable growth

India’s rising appetite for home appliances will continue as incomes rise and temperatures soar. The challenge lies not in slowing this growth but in ensuring that it is powered responsibly. Achieving this requires coordinated action: smart policies from government, technological leadership from manufacturers and conscious choices from consumers.

If India embraces this collective responsibility, it can meet its energy-efficiency and climate goals while continuing its journey toward becoming a truly developed nation—one where progress and sustainability advance hand in hand.