# Time for a heat pump mission

> Heat pumps could slash India's oil imports by 50% with quick payback.
- Title: Time for a heat pump mission · Financialexpress | Shortify
- Summary: Heat pumps could slash India's oil imports by 50% with quick payback. India's heat pumps can cut oil and gas imports by 50% in industrial sectors with…
- Keywords: india, heat pump, msme, natural gas, lpg, energy security, carbon emissions, business, money, news, Time, heat
- Source: Financialexpress — https://financialexpress.com/opinion/time-for-a-heat-pump-mission/4352715
- Author: FE Bureau
- Published: 2026-10-02T17:22:01+00:00
- Read time: 1 min
- Topics: india, heat pump, msme, natural gas, lpg, energy security, carbon emissions, business, money, news
## India's oil import bill
India spends hundreds of billions of dollars yearly on oil and gas imports, with the last financial year's net bill at $117.5 billion.
## Hidden energy economy
About 40% of Indian industry's energy goes into generating heat, using diesel, furnace oil, LPG, and piped gas.
## Heat pump efficiency
Heat pumps deliver two to four units of heat for every unit of electricity consumed, far more efficient than boilers.
## Indian heat pump use
Largely Indian-made heat pumps already operate in automotive plants in Pune, pharmaceutical factories in Bengaluru, and textile plants near Bhubaneswar.
## Cost savings
Heat pumps cut heating costs by 50 to 75% in industries, with payback periods under three years for low- to medium-temperature heat.
## Market potential
India could install 50 gigawatts of heat-pump capacity over 15 years, reducing oil and gas use by 54 million tonnes of carbon dioxide annually by 2040.
## Policy gap
India's heat-pump market is small due to upfront capital costs, low awareness, imported compressors, and lack of dedicated policy.
## Policy solutions
Cutting GST on heat-pump water heaters from 18% to 5%, interest subvention for MSMEs, and production-linked incentives could close the policy gap.
## The mission
India's factories, hotels, and homes prove heat pumps work here, the gap between 1 Gw and 50 Gw is a policy gap, not a technology gap.
## Key takeaway

India's heat pumps can cut oil and gas imports by 50% in industrial sectors with payback under three years.