Indian Economy News

India to lead the world in fuel demand growth: IEA

  • IBEF
  • June 13, 2024

The International Energy Agency (IEA) predicts that India will emerge as a significant driver of global oil demand in the latter half of the decade. Projections indicate a substantial surge in India's oil consumption, with an estimated increase of 1.3 million barrels between 2023 and 2030, positioning the country as a major player in the global oil market. By 2030, India's oil demand is anticipated to reach 6.7 million barrels per day (bpd), reflecting a robust 3.2% growth from the 5.4 million bpd recorded in 2023.

India's escalating oil demand is primarily attributed to its rapidly expanding economy, poised to maintain its status as the world's fastest-growing major economy for the third consecutive year in 2024. This economic growth, driven by robust manufacturing and industrial activities, an expanding domestic consumer market, and favourable demographics, propels India's increasing reliance on oil, particularly in the transportation sector. Despite endeavours to diversify its energy mix, India's heavy reliance on oil imports persists, with import requirements projected to surge by nearly 1 million bpd by 2030. This surge is propelled by aggressive refinery expansion programs to increase crude processing capacity, underscoring India's pivotal role in shaping global oil demand dynamics.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.