India's Oil and Petrochemical Future: Riding the Growth Wave

India's oil demand is set to increase at a 4% CAGR over the next decade, driven by favorable demographics and economic growth. Meanwhile, India's burgeoning petrochemical industry presents opportunities despite economic challenges. Clean energy transitions, though promising, face cost-related hurdles, highlighting the complexity of India's energy landscape.

India's domestic oil demand is anticipated to grow at a compound annual growth rate (CAGR) of 4% over the next decade, according to S&P Global Commodity Insights. This year, oil consumption has already reached 4.8 million barrels per day, reflecting a 4.3% increase from last year.

Pulkit Agarwal, Head of India Content (Cross Commodities), noted that India's oil demand continues its upward trajectory, supported by demographic advantages and economic growth. Despite a small base, the country is emerging as a significant player in the global oil demand landscape.

Transitioning to renewable sources presents challenges, including the cost of green energy. While India's petrochemical demand is predicted to surpass GDP growth, achieving net zero emissions will require significant policy, regulatory, and corporate efforts.

(With inputs from agencies.)