He said the industry is facing stiff competition from imports and seeking creation of a level playing field for the domestic industry.
"I am sure the power sector will rise to the occasion and ensure that (it has) the quality of international standards," Naidu said while addressing an event organised by an industry body in Noida.
Energy storage technologies are needed not only to create more resilient infrastructure but also to bring down costs, he said while underling the opportunity for the manufacturing sector.
The vice president said the Indian electrical equipment industry consists of generation, transmission, distribution and allied equipment and it provides direct employment to 5 lakh people, indirect to 10 lakh and to over 50 lakh across the entire value chain.
Naidu said global warming and climate change are affecting every aspect of our life and any new policy has to factor in the urgent need to protect environment and ensure sustainable development.
He was of the view that with India ranking second in Renewable Energy Attractive Index 2017, the sector is bound to play a major role in the years ahead.
The vice president said electric vehicles and hybrid electric vehicles will be driving the automobile industry in the coming years.