Datanomics: India's energy efficiency gains amid import woes deepen

Hormuz tensions strain India's fuel supply despite efficiency gains

The war in West Asia is squeezing India's fuel supplies as disruptions around the Persian Gulf and the Strait of Hormuz are pushing up freight costs and delaying shipments. India’s energy efficiency gains may only offset this marginally, as per capita energy consumption has also been rising.  

 

 

Energy intensity has fallen steadily, with a sharp drop in the post-pandemic years, showing the economy is producing more output with less energy.

 

 

Between financial year 2015-16 (FY16) and FY25, energy used per ₹1,000 of gross value added declined 51.70 per cent in industry, 54.39 per cent in agriculture, and 22.85 per cent in transport — a sign of efficiency gains.

 

Even so, crude oil import dependence has crept up 5.7 per cent since FY16, and natural gas has surged 25 per cent. Coal bucked the trend, showing a steady decline over the decade.