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As the world approaches 2050, the future of energy consumption seems to be in a plateau state before sliding down. The International Energy Agency (IEA) has projected India to become the largest energy growth market by 2040. However, the current demand for oil in India is high, as the country heavily relies on fossil fuels for its transportation sector.
The automobile industry is the biggest consumer of oil, accounting for over 40% of the country's total oil consumption. Apart from transportation, the industrial sector and the power generation sector also rely on oil for their operations. Currently, India imports around 80% of its crude oil requirements and produces only 20% domestically.
Energy transition
India has set an ambitious target of achieving 450 GW of renewable energy by 2030. The government has implemented policies such as the National Solar Mission and the National Wind Energy Mission to promote the use of renewable energy sources. The country is also rapidly increasing its capacity for solar power generation. Further, has set a target of installing 100 GW of solar capacity by 2022.
In terms of oil exports, India exports a small portion of its total production, with the majority of its oil drilled domestically.
If the oil demand reduces in India, it will have a significant impact on the automobile and transportation industry, which employs a large segment of the population. However, with the rapid development of electric vehicles and the push towards renewable energy, it is expected that the transition will create new job opportunities and boost economic growth in the long run. The reduction in demand for oil may affect certain segments of society, but the transition towards renewables is expected to create new opportunities and boost overall economic growth.
Conclusion
In conclusion, India's energy demand is rapidly evolving towards renewable sources, with the government's focus on increasing clean energy capacity. While the country still heavily relies on oil for its transportation and industrial sectors, the push towards renewables is expected to have a positive impact on the environment and the economy in the long run.
Keep reading
- India can finance equitable energy transition: Experts
- Addressing India’s Renewable Energy Transition in 2022
- India’s clean tech can achieve energy independence by 2047: study
- Hengbung: the first village in India to integrate hydro with solar energy
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