New Delhi, Sep 28: India is expected to play a much larger role in shaping global energy demand over the next two decades, with the country projected to account for nearly 25 per cent of the growth in global energy consumption, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said.
Puri made the remarks while interacting with around 70 young professionals and researchers participating in the Rising Leaders Programme. He pointed to India’s rapid economic expansion and the resulting increase in demand for energy across industries, transport and households.
India is already among the world’s largest energy consumers and crude oil importers, while its refining industry has expanded significantly over the years. Growing industrial production, urbanisation, rising mobility and improving household incomes are expected to keep energy demand on an upward trajectory.
This growth is also opening up a large investment opportunity for the energy sector. India’s future requirements are expected to drive spending across electricity generation, oil and gas, refining, renewable energy, transmission infrastructure, energy storage and emerging technologies.
The International Energy Agency has estimated that India’s energy investment could reach around $170 billion in 2026, reflecting the scale of infrastructure and capacity required to support the country’s expanding economy.
At the same time, India faces the challenge of meeting rising demand while maintaining energy security and gradually shifting towards cleaner sources. Renewable energy is expanding rapidly, but conventional fuels continue to support major parts of transportation, manufacturing and the wider economy.
The expected increase in demand is likely to encourage companies to invest in new production capacity, refineries, power networks, renewable projects, battery storage and other energy-related infrastructure. This could also create opportunities for manufacturing, engineering, technology companies and businesses across the broader energy supply chain.
Global energy markets remain sensitive to geopolitical developments and changes in crude oil prices, making reliable and affordable supplies an important priority for India. The country has been working to diversify its sources of crude imports while strengthening its refining and domestic energy infrastructure.
India has also stepped up engagement with major oil-producing countries on long-term energy security and market stability. Discussions with international energy partners have increasingly focused on ensuring adequate supplies and encouraging investment to meet future demand.
India’s rising energy requirement is therefore not simply a question of supplying more fuel. It is closely linked to the country’s economic growth, infrastructure expansion and industrial development. Higher energy demand could support investment and job creation across several connected sectors.
Over the coming years, India will need to expand its energy infrastructure while keeping supplies affordable and dependable and increasing the contribution of cleaner energy sources.
As India accounts for a growing share of global energy demand, developments in its energy sector are likely to have a wider impact on global markets, investment decisions and energy supply chains.
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