Image Source: The Hindu Business Line
India is on the cusp of a historic energy shift, as oil is expected to surpass coal as the country's top energy driver before 2050, according to the latest OPEC World Oil Outlook and industry reports. The shift is fueled by robust economic growth, a growing middle class, and ambitious industrial expansion.
Key Highlights:
Oil's Dominance:
The share of oil in India's base energy requirement has been estimated to rise from 25.6% in 2024 to 31.1% in 2050, for the first time in recent times, overtaking that of coal.
Coal's Decline:
Coal will dominate less, with its share dropping from 45.8% in 2024 to 29.6% in 2050. Use of coal will peak only up to 2045, a reflection of India's persistent reliance on the fuel to produce electricity.
Natural Gas in the Ascendant:
Natural gas will more than double its share, from 5.6% to 11.6% by 2050, driven by encouraging policies and increasing use in transport, industry, and buildings.
Energy Demand Boom:
India's energy demand will double to become the world's largest future energy market by 2050. Oil demand alone will rise from 5.5 million barrels per day in 2024 to 13.6 million barrels per day in 2050, led by developing transportation and industrial demand.
Renewables and Decarbonization:
While fossil fuels will remain dominant, India is also increasing its push towards cleaner fuels and renewables to combat pollution and meet climate objectives.
Energy Security Challenge:
Despite the shift, India will remain highly dependent on foreign oil and gas, once more highlighting the need for diversified fuel sources and proactive policy action.
Source: The Hindu Business Line, 13 July 2025
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