Page 20 - Policy Economic Report - December 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

India’s petrol consumption has risen 110 per cent over the past decade, while diesel demand has grown
32 per cent, taking combined petrol and diesel volumes up by nearly 50 per cent. Average diesel sales per
outlet are about double those of petrol.

Further, the addition of gas and charging facilities is expected to boost revenues at fuel retail outlets as
alternative fuel-powered vehicles gain traction, adding that the move will expand customer choice while
improving the long-term sustainability of fuel stations.

10. India reclaims spot as world’s third-largest wind market in 2025: BNEF

India has regained its position as the world’s third-largest wind energy market in 2025 after record
capacity additions, according to a latest report by Bloomberg NEF (BNEF). The country is expected to add
6.2 GW of wind power this year, nearly double the installations recorded in 2024, placing it behind China
and the United States. NEF said that India’s annual additions crossed the previous record set in 2017, with
5.8 GW of new capacity installed by November 2025. The rise has pushed India ahead of Brazil and
Germany for the first time since 2019.

The report noted that India’s move from stand-alone wind tenders to complex renewable energy auctions
has reshaped the market. These auctions combine wind, solar and battery storage and often require
developers to oversize projects beyond contracted capacity. BNEF said that nearly two-thirds of all
auctioned capacity in 2024 came from such complex tenders, with overall clean energy auction volumes
rising to about 60 GW that year. The shift is expected to support more than 30 GW of additional wind
installations by 2030 as developer’s complete hybrid and round-the-clock supply projects.

The report added that new localisation rules issued in 2025 require turbine makers to source upstream
components, including generators, bearings, and blades, from approved domestic manufacturers. The
mandate is expected to narrow cost differences between Indian and Chinese turbine models.

India’s overall wind market recovery is taking place as the country targets 500 GW of non-fossil fuel power
capacity by 2030. Transmission expansion plans announced by the central government in 2024 aim to
support this buildout and ease grid constraints.

November 2025 Page | 19