India to Become $5 Trillion Economy Before 2028: Puri

Davos, Jan 16 (PTI) Union minister Hardeep Singh Puri on Tuesday asserted that India can become a five trillion dollar economy much before 2028 and said the country's energy transition needs to be done in an orderly manner to safeguard the interests of its large population.

Puri, the minister for petroleum and natural gas as well as housing and urban affairs, said India is aware of its commitments towards sustainability goals and will meet all the targets in time while meeting the requirements of a growing economy.

He was speaking at a CII-EY breakfast session on 'accelerating India's energy transition towards sustainable economic growth' on the sidelines of the World Economic Forum Annual Meeting 2024.

"I don't think we need to wait till 2028 to become a five trillion dollar economy, and if you look at what is happening, it should happen much before 2028," he said while listing various macroeconomic parameters.

"I also think that the transition has to be orderly because transition by nature has to have both a clear roadmap and it must have in place all the safeguards that will ensure that there are no knee-jerk decisions taken," he noted.

Puri said it is even more so important for a country like India, which is also now the world's most populous country.

"When it comes to energy, the relationship between economic growth and energy is very important. Because we are now close to a 4 trillion dollar economy, but the fact is, we need to take care of a very large part of our population.

"It's one thing to be theorising about the need for the transition without having to take care of domestic compulsions. As far as India is concerned, availability and energy resources are important because we import a key portion of our crude oil requirements," he said.

"Given the multiple crises the world is facing, a democratically elected government like we have in India has to ensure affordability also. Then comes sustainability, and we are fully committed to that also," the minister said.

He said the traditional market, which was dependent for energy on a defined number of suppliers, who could at will decide price etc, that dynamic doesn't seem to be working.

"I am confident that all the targets we have for 2030 on the energy transition, we will meet them. Our green hydrogen policy will succeed in a big way.

"We are on our way to meet our targets on aviation fuel. India today presents a fantastic potential for biofuel blending. We are meeting all our targets ahead of time. The establishment of the Global Biofuel Alliance is another example of our successes," he added.

Puri underlined the importance of price of green hydrogen for faster energy transition while stating that the country will continue to be fossil fuel dependent for some time.

"We need to bring the price of Green Hydrogen down for a faster transition. But at least for the next 20 years, India will be fossil-fuel dependent," he said at the CII-EY session.

The minister said the availability of energy in India is a challenge as the economy is growing and so is the import dependence. He highlighted that the Indian economy faces three developmental challenges with respect to energy transition - availability, affordability, and sustainability, all of which are critical for the energy transition.

At the same session, Rajiv Memani, Vice President, CII & Chair - India Region and Chairman - Emerging Markets Committee, EY, said the Indian economy has built resilience in macro-economic policy and balance sheets.

He said the government has articulated self-sufficiency in energy and taken measures both on the supply and demand sides. He said private sector investment in renewable energy is about USD 300-350 billion.

Anja-Isabel Dotzenrath, Executive Vice President, Gas & Low Carbon Energy, bp, stated that while energy transition is critical, it must be done in an orderly manner. Recent disruptions have demonstrated how sensitive the petroleum supply chain can be, she added.

Mahesh Kolli, Founder, President & Joint Managing Director, Greenko, said that certain Indian industry sectors are well-positioned to transition and can meet carbon border requirements.