India's robust energy growth outlook to set tone for global markets: Modi

India's energy demand is set to double from current levels by 2045, making it imperative for the country to push for supply capacity growth in both fossil fuels and clean energy to achieve affordable energy objectives and lower carbon footprint, Prime Minister Narendra Modi said Feb. 6.

Speaking at the inaugural session of the India Energy Week in Goa, Modi said energy would be a crucial component of India's economic growth story in the decades to come.

"Economic experts around the world believe that India will soon become the third largest economy in the world," he said, adding that the country's energy sector would witness billions of dollars of new investments.

"India is the world's third largest energy, oil and LPG consumer. It is also the fourth largest LNG importer and refiner along with the fourth largest automobile market. Demand for EVs is rising sharply. Our annual refining capacity will grow from 254 million mt to 450 million mt. Therefore, there is a need to ensure affordable fuel to everyone," Modi said.

He said that despite adverse global factors, India is among the few nations where petrol prices had come down and 100% electricity coverage was achieved by electrifying millions of households. "India is not just meeting its needs but is also determining the global direction," he said.

Infrastructure push

Modi said the government has pledged more than $130 billion for infrastructure in the most recent federal budget, a big part of which would go to the energy sector. This amount will help in creating assets in railways, roadways, waterways, airways and housing, which would need widespread efforts to expand energy capacity.

"India's domestic gas output is also rising due to the government's reforms and the country is making efforts to take the percentage of gas in the primary energy mix from the current 6% to 15%," Modi said.

He said the Global Biofuel Alliance, which brings together governments, organizations and industries from across the world on a single platform, was initiated during the G20 Summit held in India in 2023. It has received holistic support, with about 22 nations and 12 international organizations coming onboard to encourage the use of biofuels in the world, while also creating economic opportunities worth $500 billion.

"India is also witnessing fast adoption of biofuels. Ethanol blending witnessed a significant rise from 1.5% in 2014 to 12% in 2023, leading to a reduction in carbon emissions by about 42 million mt." The government has set a target of 20% ethanol blending in petrol by 2025.

Outlining the government's commitment to transforming rural economies through its waste-to-wealth management model, Modi highlighted the government's efforts toward sustainable development.

"We are working toward the installation of 5,000 compressed biogas plants in India," Modi said.

Environmental concerns

Addressing global environmental concerns, Modi said: "Despite being home to 17% of the world's population, India's carbon emission share is only 4%. We are committed to further improving our energy mix by focusing on the development of environmentally sensitive energy sources. India's goal is to achieve net-zero emissions by 2070."

He said that currently India ranks fourth in the world in renewable energy installed capacity, with 40% of India's installed capacity coming from non-fossil fuels.

"In the past decade, India's solar energy installed capacity has grown by more than 20 times. The campaign to connect with solar energy is gaining momentum in India," he said.

Highlighting India's stride in the green hydrogen sector, Modi said the National Green Hydrogen Mission would pave the way for India to become a center for hydrogen production and for exports.