India to Lead Global Oil Demand Growth by 2035
India is poised to become the epicentre of global oil demand growth over the next decade, according to a new report by the International Energy Agency (IEA). The Paris-based agency projects that India’s oil consumption will rise from 5.5 million barrels per day (mbpd) in 2024 to 8 mbpd in 2035, driven by rapid economic expansion, industrialisation, and an increase in vehicle ownership.
The IEA noted that while China dominated global oil demand growth over the past decade, India will now take the lead, accounting for nearly half of the additional global oil demand through 2035. The surge will be supported by growing demand for plastics, chemicals, aviation fuel, and Liquefied Petroleum Gas (LPG) for cooking. India is also expected to remain a major player in refining and exporting transport fuels.
Despite government efforts to ramp up domestic oil production, India’s import dependency is forecast to rise from 87 percent in 2024 to 92 percent by 2035. The country’s refining capacity is set to increase from 6 mbpd to 7.5 mbpd by 2035, strengthening its position as a key hub in global energy trade and refining Russian crude oil for global markets.
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