According to International Energy Agency (IEA) chief Fatih Birol, India will soon surpass China as the largest driver of global oil demand.
At the same time, India has a chance to become a world leader in the production of green hydrogen.
Demand is rising in the world's third-largest energy-consuming nation due to a growing population that has likely already surpassed China's.
Although the nation's transition from fossil fuels to cleaner sources is expected to be slower than that of other regions, cheap electricity from renewable energy sources like solar energy can help it become a green hydrogen leader.
"India's oil demand will grow. I think India will soon takeover from China as the largest driver of global oil demand growth," Birol told PTI on the sidelines of a G20 event in New Delhi.
This is primarily due to the rapid adoption of electric vehicles in China, which has reduced the use of gasoline and diesel.
"One of the factors for the weakening of oil demand in China is rapid electrification of cars and buses," he said.
He hoped that electric vehicles, which run on batteries charged by electricity, increased, demand would decrease in India.
In China, sales of electric vehicles nearly doubled to 6.1 million units in 2022, while India had 48,000 vehicles during the same time frame.
Birol had previously stated during his speech at the event that he had predicted six years ago that India would soon take center stage in global energy affairs.
"After 6 years today, I can tell you that India is at the centre of global energy affairs today."
This is due not only to its enormous demand but also to the rapid progress it has made in replacing fossil fuels with biofuels like sugarcane ethanol, foodgrains, and agriwaste and generating electricity from renewable sources like solar.
He claimed that the country saved $2 billion in oil imports by mixing 10% ethanol into gasoline.
"In last 5 years, India was the largest contributor to the global solar capacity," he said, adding it has provided 500 million people access to electricity and given cooking gas to nearly 100 million to eliminate household pollution caused by using wood and others for cooking.
Hydrogen, which is the cleanest known form of energy, can also be used in the same way.
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