India to make up biggest share of energy demand growth at 25% over next two decades

India will make up the biggest share of energy demand growth at 25% over the next two decades, as it overtakes the European Union as the world’s third-biggest energy consumer by 2030.

The IEA said in its India Energy Outlook 2021 released today, India’s energy consumption is expected to nearly double as the nation’s gross domestic product GDP expands to an estimated $8.6 trillion by 2040 under its current national policy scenario.

The IEA said that this is underpinned by a rate of GDP growth that adds the equivalent of another Japan to the world economy by 2040. India’s growing energy needs will make it more reliant on fossil fuel imports as its domestic oil and gas production has been stagnant for years despite government policies to promote petroleum exploration and production and renewable energy.