We project that India’s energy consumption grows the fastest among all major economies by 2035. As a result, the country remains import dependent despite increases in production
Growth in India’s energy consumption
Share of global energy consumption in 2035
Growth in India’s energy production
- India’s demand growth (+129%), is more than double the non-OECD average of 52% and also outpaces each of the BRIC countries as China (+47%), Brazil (+41%), and Russia (+2%), all expand slower.
- India’s share of global demand increases to 9% by 2035, accounting for the second largest share among the BRIC countries with China at 26%, Russia at 4%, and Brazil at 2%.
- Demand for gas expands by 162%, followed by oil (+120%) and coal (+105%). Renewables rise by 699%, nuclear by 317%, and hydro by 97%.
- The fuel mix evolves very slowly over the Outlook with fossil fuels accounting for 86% of demand in 2035, compared 92% today.
- The share of coal in the fuel mix falls from 58% today to 52% by 2035, while the share of renewables rises from 2% to 8%.
- Energy consumption in power generation more than doubles (+133%). Coal remains the dominant fuel, but its share drops from 78% today to 69% in 2035.
- Energy in transport grows by 5.8% per year and oil remains the dominant fuel source with a 93% market share in 2035.
- The share of energy used for combustion in industry remains over 80% during the forecast.
- Energy production as a share of consumption declines marginally from 58% today to 56% by 2035 as imports rise by 138%.
- Declining oil production (-26%) is outweighed by increases in gas (+154%) and coal (+104%), and non-fossil fuels (+312%).
- Coal remains the dominant fuel produced in India with a 65% share of total production in 2035. Renewables overtakes oil as the second largest, increasing from 4% to 14% in 2035 as oil drops from 10% today to 3% by 2035.
- Oil imports rise by 165% and account for 56% of the increase in imports, followed by increasing imports of gas (+173%) and coal (+105%).
- By 2035, India’s energy intensity of GDP is 36% lower than today’s level, similar to the non-OECD average.