India: Economic and Energy Demand Outlook Bright, But Clouds Remain

If economic reforms continue and investment deepens, India could supplant China as the world’s fastest-growing large economy and energy demand growth engine for the next decade. However, its more services-heavy, domestic focused economic structure will have a major impact on its future energy demand profile. It also faces hurdles – such as geopolitical tensions, energy import dependency and unfinished reforms – that could weigh on growth. In this concise report, Energy Intelligence forecasts that Indian oil demand – which is around 5.8 million b/d – will grow by about 170,000 b/d annually, topping out at 9 million b/d by 2050. If it can overcome infrastructure shortfalls, natural gas demand will also likely rise significantly.