India To Overtake China! Global Oil Demand Epicenter Shift Revealed – Massive Growth Ahead!

Energy

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Updated on 12 Nov 2025, 03:00 pm

According to the International Energy Agency's (IEA) World Energy Outlook 2025, India is set to become the global hub for oil demand growth by 2035, overtaking China. India's energy demand is expected to rise at an annual rate of 3 percent, the highest globally, fueled by increasing needs from households and industries. Despite efforts to boost domestic crude oil production, the country's import dependence is projected to surge to 92 percent by 2035. India's oil consumption is anticipated to grow from 5.5 million barrels per day (mb/d) in 2024 to 8 mb/d in 2035, driven by factors like increased car ownership, demand for plastics and chemicals, and the wider use of LPG for cooking. Natural gas consumption is also expected to nearly double to 140 billion cubic meters (bcm) by 2035, largely met by liquefied natural gas (LNG) imports, which are set to triple. India's natural gas import dependence is predicted to rise from about 50 percent currently to 70 percent by 2035.

Impact This news has a significant impact on India's economy and stock market. It signals substantial growth opportunities for energy companies, logistics, and infrastructure sectors involved in oil and gas import, refining, and distribution. Increased import dependency could also affect trade balances and energy security policies. India's strengthening role as a global refining hub and exporter of transport fuels presents considerable economic advantages. The report suggests oil and natural gas prices will generally rise over the coming period, potentially impacting inflation and consumer costs. Rating: 8/10

Difficult Terms Explained: Crude Oil: Unrefined petroleum that is processed into various fuels and products. Transport Fuels: Fuels used for transportation, such as petrol, diesel, and aviation fuel. Import Dependence: The extent to which a country relies on foreign countries for its supply of a particular good or resource. Energy Demand: The total amount of energy required to meet the needs of households, industries, and other sectors. Liquefied Petroleum Gas (LPG): A flammable hydrocarbon gas used as a fuel for cooking, heating, and vehicles. Liquefied Natural Gas (LNG): Natural gas that has been cooled down to a liquid state for easier transport and storage. City-Gas Distribution (CGD): The distribution of natural gas to domestic, commercial, and industrial consumers in urban areas. Swing Supplier: A producer that can quickly adjust its output to meet changes in market demand or supply disruptions. Refining Capacity: The maximum amount of crude oil that a refinery can process in a given period. Current Policies Scenario (CPS): A projection by the IEA based on current government policies and their expected implementation.