India's Oil Demand Surge: Transforming Global Energy Markets

India is poised to lead global oil demand growth, projected to add a staggering 1 million barrels per day by 2030, according to the International Energy Agency (IEA). The report released on Tuesday highlighted India's rapid economic expansion, which is driving this demand surge.

While global oil demand is predicted to grow by 2.5 million barrels per day by the decade's end, reaching a plateau near 105.5 million bpd, India's demand is projected to outpace all others. Currently relying on imports for over 95% of its oil needs, India's consumption is expected to rise from 5.64 million bpd in 2024 to 6.66 million bpd by 2030.

Key contributors to this growth include transport fuels, with petrol and jet fuel seeing substantial increases due to rising car ownership and an expanding middle class. However, the IEA also warns of potential risks, as a large portion of India's consumption boom is debt-fueled, with household debt surging in recent years.

(With inputs from agencies.)