Indians Will be Three Times Richer By 2040, Says OPEC

The world oil outlook 2040 report released by the Organisation of Petroleum Exporting Countries (OPEC) suggests that the Indian economy would grow at the fastest pace through 2040, reports The Economic Times.

The global primary energy demand is estimated to go upto 365 million barrel of oil equivalent per day (mboe/d) in 2040, growing at a rate of 1.2 per cent. Of this, China and India are reported to account for 95 per cent of the increase in the total primary energy demand. India's demand is projected to increase by 22 (mboe/d) from 2015-2040, says the report.

Investments of $11 trillion is necessary in the oil market to meet global demand, says the report which maintains that oil will remain the largest contributor to the energy mix, higher than gas and coal through 2040, with a share of nearly 28 per cent.

The report also projects India's average demand growth as fast as 3.7 per cent per annum and an additional demand of 5.8 mb/d as well.

Global growth will be driven by developing economies growing at 4.5 per cent. Growing at an average rate of 6.5 per cent per annum, India would remain the fastest growing country driven by the rapidly expanding working-age population in the 2015-2040 period, the report said.

It also expects India’s income level to rise threefold, reaching around $22,500 (2011 Purchasing Power Parity(PPP)) in 2040. Overall, the global average income is expected to increase by 75 per cent, from around $15,000 (2011 PPP) in 2017 to around $26,300 (2011 PPP) in 2040.