Indian Economy News

India will be the world's biggest oil demand growth driver through 2030: IEA

  • IBEF
  • February 8, 2024

India is projected to emerge as the largest contributor to global oil demand growth within the next seven years, according to the International Energy Agency (IEA). The country, already the world’s second-largest net importer, faces a 22% decline in domestic production, reaching 540 thousand barrels per day (b/d) by 2030 from the current 700 thousand b/d. This revelation, highlighted in a report released at the India Energy Week in Goa, underscores India's pivotal role in the global oil landscape. Despite the government's efforts to attract foreign upstream investment, domestic crude oil production is expected to continue declining, meeting only 13% of India's needs. With an increase in demand projected at almost 1.2 million b/d, India is set to reach 6.6 million b/d by 2030, accounting for over one-third of the anticipated 3.2 million b/d global gains.

In 2023, India's crude imports surged to 4.6 million b/d, marking a 36% increase over the past decade. Despite challenges in domestic production, the report highlights the role of electric vehicles and advancements in energy efficiency, estimating that India will avoid an additional demand of 480 thousand b/d between 2023 and 2030. These factors contribute to India's strategic position in shaping global oil dynamics in the coming years.

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