India is the world’s fourth largest economy1 as well as the fourth largest energy consumer.
India imports a substantial portion of its energy — 80 per cent of its oil, 18 per cent of its gas, and now even 23 per cent of its coal. As the Indian economy continues to grow, so will its energy consumption, especially as the growth of its manufacturing sector catches up with services and agriculture. With domestic resource production facing various challenges, the general expectation has been that Indian energy imports will continue to grow, and energy security concerns will intensify.
The outlook and options for Indian energy independence therefore becomes an important topic. A 2030 outlook is particularly relevant since it is difficult to significantly change energy policy in 5 or 10 years, but almost any boundary conditions can be changed over a 15-year period. Moreover, there have been few if any, in-depth perspectives on this topic for 2030.
This white paper builds off the ‘2030 Global Energy Perspective’, McKinsey’s substantial body of research on energy demand and supply, and our understanding of the evolution of the global and Indian energy sectors. We have tried to address some of the basic questions that arise about Indian energy in 2030:
Is India’s current energy trajectory sustainable, as is or with some adjustments?
To what extent can India aim to achieve energy independence by 2030? What opportunities does India have to increase domestic energy supply and curb demand over and above the current trajectory?
How can we make the most of the new global supply dynamics and technologies?
This paper is a thought starter, intended to
