India is positioned to become one of the world's most important energy markets over the next decade, according to Rosneft CEO Igor Sechin. Speaking at the St. Petersburg International Economic Forum, Sechin revealed that India will account for about half of global oil demand growth and 15 per cent of the increase in global electricity consumption over the next decade. As reported by The Times of India, India's oil consumption is expected to rise 44 per cent to nearly 8 million barrels per day by 2035, while electricity demand is projected to surge 80 per cent to almost 3,000 terawatt-hours, approaching current consumption levels in the European Union. This represents a much bigger leap than the global average rise of just 5%, highlighting India's exceptional energy growth trajectory. According to the International Energy Agency's projections, over the next 10 years, India will account for approximately 15% of the global increase in electricity demand, making it one of the world's key drivers of global energy consumption growth.
Russia's economic partnership with China and India has proven highly successful, with Russian oil supplies bringing tangible economic benefits to both countries. According to Rosneft, since April 2022, the combined value of Russian oil supplies to China and India has exceeded $40 billion. The Russian energy major has deepened its engagement with India since 2022, becoming one of the country's largest crude suppliers as Indian refiners increased purchases of discounted Russian oil. Rosneft holds a 49.13 per cent stake in Nayara Energy, which operates a 20 million tonnes-per-year refinery in Gujarat and a nationwide fuel retail network. Indian firms are also partners of Rosneft in oil and gas fields in Russia, further strengthening the strategic partnership.
Despite the positive partnerships, Sechin warned that the conflict around the Strait of Hormuz and broader geopolitical tensions pose risks to India's energy security. As reported by The Times of India, he stated that the conflict in the Strait of Hormuz, along with new risks, will unfortunately have a negative impact on meeting the needs of the Indian economy. Sechin noted that disruptions in Hormuz extend beyond oil and gas markets, affecting fertilizer shipments and raising the risk of higher food prices, with India, Africa and Southeast Asia among the most vulnerable regions. Recent data shows that fertilizer prices had risen sharply this year, raising concerns about possible food shortages if supply chains get disrupted further. However, Sechin emphasized that Russia cannot be excluded from global supply chains and remains a critical supplier of energy to global markets.
Sechin argued that the global economy is entering a period of heightened strategic risk marked by sanctions, supply-chain disruptions, rising debt and underinvestment in conventional energy. According to The Times of India, he warned that years of insufficient investment in oil and gas production, combined with rapidly growing electricity demand from artificial intelligence and data centres, could create future shortages of power and energy supplies. He described China as the best-prepared major economy for the current environment, citing its investments in power generation, electricity grids, energy storage and transport infrastructure. China, he said, has combined rapid renewable energy expansion with continued investments in coal and nuclear power to maintain energy security and keep electricity prices competitive. Sechin also warned that growing restrictions on trade and the increasing use of sanctions were fragmenting the global economy and accelerating the development of alternative payment systems and trade routes.
