(MENAFN- KNN India) New Delhi, Nov 12 (KNN) India is set to become the world's largest source of energy demand growth by 2035, emerging as the biggest contributor to the rise in global oil demand and the second-largest driver of growth in electricity generation and coal use, according to the International Energy Agency's (IEA) World Energy Outlook 2025 released on Wednesday.

Electricity demand in India is projected to grow by 80 percent by 2035, the fastest rate among major economies, driven largely by rising use of household appliances and cooling systems, attributing it to India's expanding energy needs to strong economic activity and rapid urbanisation.

Oil is expected to remain the country's dominant fuel through 2050, with India replacing China as the primary engine of global oil demand growth. Over the past decade, China accounted for more than 75 percent of global oil demand growth, but this trend is now shifting towards India.

“Between 2010 and 2024, its GDP growth rate was second only to that of China among major countries and regions. In the period to 2035, GDP grows on average by 6.1 percent each year in India, which is more than any other major country or region, and its GDP per capita is 75 percent higher in 2035 than today,” said the report.

The country remains below the global average on several economic and energy indicators, but the report states that it is steadily converging with global benchmarks.

By 2035, India will add the equivalent of one Bengaluru to its urban population every year, expand its built-up area by 40 percent, put nearly 12,000 new cars on its roads daily and install over 250 million air conditioners in households.

Despite this growth, India will continue to have one of the lowest per capita electricity consumption levels among major nations.

Coal-fired power generation in India is expected to rise in the near term before stabilising around 2035, supported by parallel expansion in renewable and nuclear energy.

India will remain one of the only major countries to sharply increase domestic coal production while output declines elsewhere.

The report also highlights the rapid expansion of India's power distribution grid, which has grown by more than 50 percent-or 4.6 million kilometres-over the past decade.

India's oil consumption is forecast to increase from 5.5 million barrels per day in 2024 to 8 million barrels per day by 2035, driven by higher car ownership, rising demand for plastics and chemicals, growing aviation activity and increased use of LPG for cooking.

Nearly half of the incremental global oil supply through 2035 is expected to meet India's demand, the IEA said.

(KNN Bureau)

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