India’s rapid economic growth, urbanization, and industrialization are set to revolutionize its energy landscape, with natural gas emerging as a critical component of its energy transition, according to the International Energy Agency (IEA).
In its first India Gas Market Report, unveiled at India Energy Week (IEW) 2025 in New Delhi, the IEA projects that India’s annual gas demand could reach 120 billion cubic metres (bcm) by 2030. This level would put India’s gas consumption on par with the total demand of South America, underscoring the transformative potential of government-backed strategies and policy interventions.
A Shift Toward a Gas-Based Economy
India, the world’s most populous nation, is pursuing a gas-based economy as part of its broader aim to cut oil imports and reduce carbon emissions. The government’s push includes infrastructure development, such as expanding city gas distribution networks and liquefied natural gas (LNG) import terminals.
However, the report highlights the volatile history of gas in India’s energy mix, marked by rapid growth periods that were sometimes followed by stagnation or decline. Addressing these challenges will require consistent policy support and investment in the sector, the IEA said.
Why It Matters
India’s growing gas demand reflects its broader energy strategy to meet rising consumption while transitioning to cleaner fuels. With global natural gas demand slowing in many regions, India’s anticipated growth offers a rare bright spot in the market.
As India aims to decarbonise its economy, this shift toward natural gas could play a pivotal role in meeting its climate goals while supporting its burgeoning industrial and urban sectors.
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