Sat Nov 30 02:45:11 UTC 2024: ## India’s Energy Intensity Declines Despite GDP Growth, Outpacing Global Trends

**NEW DELHI** – India’s energy intensity – the amount of energy used per unit of economic output – has continued to fall over the past decade, exceeding global averages and defying expectations tied to rising GDP, according to a new report by the Observer Research Foundation (ORF). The study, authored by Lydia Powell, Akhilesh Sati, and Vinod Kumar Tomar, reveals that while India’s GDP and energy consumption have both increased, the country’s carbon and energy intensities have dropped significantly below the global average.

The report highlights a two-stage decline in energy intensity. Initially, energy-saving programs and economic restructuring led to exponential decreases. Subsequently, while technological advancements continued to contribute, the rate of decline shifted to a linear pattern. Over the last three decades, India’s key energy-consuming sectors – industry, buildings, and transport – have dramatically reduced their energy intensity thanks to technological improvements, resulting in a corresponding decrease in carbon intensity.

In 2022, industry consumed over 40% of India’s energy, followed by the residential sector (25%), transport (17%), and agriculture (5%). Coal remains the dominant source of industrial energy (37%), followed by biofuels and waste (29%). Biomass is the primary energy source for residential use (59%), while oil products overwhelmingly fuel the transport sector (92%).

Globally, energy intensity fell by only 1% in 2023, significantly below the average annual decline of the previous decade. In contrast, OECD countries experienced a sharper reduction (3.1%), largely due to increased renewable energy and weaker industrial activity. The EU saw a particularly impressive drop of 4.7%, with energy consumption falling while GDP grew marginally. However, energy intensity remained largely unchanged in many non-OECD countries, and increased in China.

India’s energy intensity has shown a consistent downward trend, declining by 1.58% per year between 2010 and 2020, exceeding the previous decade’s rate. While carbon intensity fell at a slower pace, it still achieved its fastest-ever decline (1.3% per year) during the 2010-2020 period. Overall, India’s energy intensity decreased by 57% and carbon intensity by 36% over the last three decades. Despite this progress, India’s carbon intensity remains above that of leading nations such as the EU and Japan.

The report concludes that while increasing energy consumption contributes to GDP growth, declining energy and carbon intensities suggest that India is successfully decoupling economic growth from environmental impact. However, the authors stress the fundamental link between energy consumption and economic activity, emphasizing the need for continued efforts to improve energy efficiency and transition to cleaner energy sources.

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