In the energy world, India is becoming the new China.
The world’s second-most populous nation is increasingly becoming the center for oil demand growth as its economy expands by luring the type of manufacturing that China is trying to shun. And just like China a decade ago, India is trying to hedge its future energy needs by investing in new production at home and abroad.
Just like China’s ascent, the growth is being driven by manufacturing. Indian Prime Minister Narendra Modi’s “Make in India” campaign aims by 2022 to create 100 million new factory jobs and increase manufacturing’s share of the economy to 25% from about 18% when he took office in 2014.
Manufacturing drives oil use both by increasing the amount of goods that need to be moved around on ships and trucks, and by raising living standards of workers.
Rising wages allowed Indians to purchase a record 24 million new vehicles in 2015.
