IEA Foresees India as the Epicentre of Global Oil Demand Growth by 2035
SEATTLE (Oil Monster): India is on track to become the world’s fastest-growing center of oil demand, according to the latest Global Energy Outlook released by the International Energy Agency (IEA). The report highlights that India’s overall energy consumption is expected to rise by an average of 3% annually until 2035, driven by rapid economic expansion, industrial growth, and surging vehicle ownership.
The IEA projects that India’s energy appetite will surpass that of China and Southeast Asia combined in the coming decade. While China had dominated global oil demand growth over the past ten years—accounting for more than three-quarters of the increase—India is now poised to take the lead.
Oil consumption in the country is forecast to jump from 5.5 million barrels per day (mbpd) in 2024 to about 8 mbpd by 2035. This represents a surge of nearly 2 mbpd, making India the single largest contributor to global oil demand growth. Africa and Southeast Asia are expected to follow, adding approximately 1.2 mbpd and 1 mbpd, respectively, during the same period.
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Despite continued efforts to boost domestic output, India’s reliance on imported oil is likely to deepen, with the IEA estimating an increase in import dependency from 87% in 2024 to around 92% by 2035.
The report also notes a strong upward trajectory in India’s natural gas consumption. Demand for natural gas is expected to nearly double, reaching 140 billion cubic meters (bcm) by 2035, while liquefied natural gas (LNG) imports are projected to triple as the country continues to expand its energy infrastructure and diversify its fuel mix.
According to the IEA, India’s accelerating energy demand underscores its pivotal role in shaping future global oil and gas markets, positioning it as a key driver of energy transition trends across the developing world.