The report also emphasizes India's leadership in “energy transition and resilience”
India to Drive Global Energy Demand by 2035: IEA World Energy Outlook 2025
According to the “International Energy Agency’s (IEA) World Energy Outlook 2025, India is set to become the largest driver of global energy demand by 2035.The report highlights that India’s growing economy, rapid urbanisation, and rising middle class will propel energy demand to grow faster than any other major country — surpassing China and Southeast Asia combined.
Between “2010 and 2024”, India’s GDP grew at an average of “6.1% annually”, It was the second-highest among major economies. By 2035, the IEA projects India’s “per capita GDP will be 75% higher”, pushing millions into higher living standards — and driving energy consumption across transport, manufacturing, and housing.
India adds the equivalent of “one Bengaluru to its urban population every year”, builds 40% more floor space, and adds nearly “12,000 new cars daily”. Oil remains India’s dominant fuel till 2050, with its usage expected to rise from “5.5 million barrels per day in 2024 to 8 million by 2035”, making India the “largest source of oil demand growth globally”.
Yet, the IEA praised India’s parallel “clean energy transformation”. Non-fossil fuel sources already make up “50% of installed power capacity”, expected to rise to “70% by 2035”. Investment in renewables now outpaces fossil fuels by a ratio of “4:1”, led by 113 billion USD in solar power projects over the last decade. Coal will plateau by 2035 as renewables, nuclear, and battery storage expand.
The report also emphasizes India’s leadership in “energy transition and resilience”. Investments in data centres alone are expected to reach “580 billion USD globally this year”, surpassing oil supply spending, reflecting a shift towards digital and electrified systems.
As COP30 climate talks unfold in Brazil, India’s progress stands out — not only as an energy consumer, but also as a “global clean energy hub” shaping the world’s future demand and sustainability goals.
