India is the largest opportunity for Alberta’s trade exports. The opportunity to provide energy to the fastest-growing energy-consuming country in the world is something Alberta should closely examine. Increasing our relationship concerning immigration is an additional benefit of increasing relations with India.
India is on course to become the most populous country in the world. Their energy demand will only increase as their population grows and modernizes. India accounts for nearly one-quarter of global energy demand growth from 2019‑40. Over 80% of India’s energy needs are met by three fuels: coal, oil, and solid biomass.
- Oil consumption is 5.4 million barrels per day (b/d) today and will reach almost 8 million b/d over the next decade, overtaking China as the number one driver of global oil demand growth.
- Oil imports, already 88% of consumption, will rise to 95% by 2035.
- Coal usage is forecasted to increase at 4-5% per year over the next decade.
India is also poised to be one of the top gas markets. The current government wants to transition into a ‘gas-based economy’, increasing the share of gas in the energy mix from 6% today to 15% by 2030. If all proposed gas infrastructure were to be built, some 70% of India’s population would have access to gas, up from around 3% today. India will be the fastest-growing market for natural gas in the world.
When Japan – with a population of 124 million people – increased its energy trade with Alberta, it equated to $2.6 billion. India has 1.4 billion people and their energy needs are increasing faster than anywhere else in the world. Developing Alberta’s relationship with India and tapping into their energy needs is the largest opportunity available to Alberta.
Suggested Action – New Trade Office in Mumbai
Mumbai is the de facto financial center of the country, the most populated city in India, and one of the world’s top ten centers of commerce. Notably, 70% of maritime trade in India is through Mumbai’s ports as well as 70% of all capital transitions to the country’s economy happen in this city. It houses numerous national and multinational corporations. Some would call Mumbai the political gateway to central, west, and south India.
To capitalize on the future energy needs of India, one would want a presence near the major import routes (ports), near the corporations that would use the energy, and near the financial center of the country. Mumbai, combined with the existing office in New Delhi, would ensure that Alberta is situated in the key cities for the world’s fastest-growing energy market.
Additionally, Mumbai has emerged as a technology sector leader in Asia as the 6th fastest-growing mature tech ecosystem in the world. The opportunities for Alberta’s tech sector would also benefit from a trade office in Mumbai.
