India is planning to increase its natural gas consumption in order to meet its growing energy demands. The country aims to quadruple its natural gas usage by 2030, which is crucial for sustaining its annual GDP growth rates of seven to eight percent.
Currently, over 80% of India's energy needs are met through coal, oil, and solid biomass, raising concerns about energy security. To address this, the Indian government is promoting the use of compressed natural gas (CNG) vehicles, which have gained popularity due to their robust distribution network and lower operational costs. The government has also implemented policies to encourage the adoption of CNG and liquefied natural gas (LNG) in transportation.
Sales of CNG vehicles have surged, and plans have been unveiled to transition a third of heavy-duty trucks to LNG. Additionally, the government is promoting natural gas for domestic cooking, with piped connections increasing significantly.
As India's demand for natural gas is projected to double by 2040, the country will heavily rely on imports, particularly LNG. State-owned entities such as Petronet and GAIL are expected to benefit from this shift.
Despite global economic challenges, India remains confident in its growth trajectory. The country is seen as a hub for growth, with many Fortune 500 companies establishing global capability centers in India. Investment strategies are also shifting, with experts suggesting diversifying portfolios to capitalize on India's growth potential.
The interplay between domestic policies and global market trends will be crucial in shaping India's future trajectory.