Introduction: India’s Emerging Energy Relations: Issues and Challenges

Part of the India Studies in Business and Economics book series (ISBE)


India, the third largest economy (PPP terms), is the fourth leading consumer of oil (EIA 2014). Being a growing economy, it is emerging as major market for energy product, technology and services. Estimates suggest that its demand for hydrocarbon will increase as it moves to high growth trajectory more so when it proposes to augment the share of manufacturing in its growth profile. It is calculated that the demand will grow by 183 % in case of gas, by 121 % for oil and for coal 108 % by 2035. What is significant that the growing demand is expected to be met by external supplies because the domestic production of energy to consumption is likely to decline from 61 to 56 %, Thus imports are estimated to grow up by 163 % this will indeed enhance its import dependence. The Planning Commission calculations are that India’s oil imports account for 78 of total oil demand and may go up by the end of twelfth 5 year plan to 90 % . Similarly the coal dependence is expected to grow from 18.8 to 22.4 % by end of twelfth plan and 25.9 % by the end of thirteenth 5 year plan. The critical importance of imports need to be appreciate in the context of the high incidence of energy poverty in the country. Its per capita energy consumption is one third of the global average. Apparently to meet its growth targets and overcome energy poverty, India needs to develop a pro active energy regime. It is reported that the NDA government is likely to bring out institutional changes by establishing Energy Commission with a fairly long term vision of energy security aiming at energy independence.


Energy Relation Saudi Arabia Foreign Policy Energy Security Bilateral Relation 
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© Springer India 2015

Authors and Affiliations

  1. 1.Energy Studies Programme, School of International StudiesJawaharlal Nehru UniversityNew DelhiIndia

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