JUNE 20248TOP STORIESINDIA'S ENERGY CONSUMPTION SOON TO SURPASS USAONDC RECORDED NINE MILLION TRANSACTIONS IN MAY, SAYS CEOIndia's energy consumption is poised to nearly double by 2050, reflecting one of the fastest growth rates globally, according to Igor Sechin, CEO of Rosneft, a leading Russian oil producer. Speaking at the 27th St. Petersburg International Economic Forum (SPIEF), Sechin highlighted India's burgeoning economy and its significant implications for global energy demand. He predicted that the Indian economy, with its robust growth trajectory, would surpass that of the US by 2050.Sechin's remarks, detailed in a statement from Rosneft, underscored India's anticipated economic ascent. He projected that within the next five years, India will maintain its strong economic momentum, positioning itself among the top three largest economies worldwide with a GDP of $5 trillion. By 2050, India is expected to overtake the US in terms of economic size, driven by substantial increases in energy consumption.The statement further noted Sechin's prediction that India's end-use energy consumption will grow by 90 percent by 2050, underscoring the country's rapid expansion in energy needs. He emphasized that developing countries will be the primary drivers of oil consumption in the coming decades. By 2030, these nations are expected to account for 95 percent of global demand growth, with the highest increases projected in Asian countries, which are key trading partners for Russia.Addressing the topic of energy transition, Sechin acknowledged the potential of hydrogen as a clean fuel but pointed out existing challenges related to production technology, logistics, and market readiness. His comments reflected a cautious stance towards the immediate feasibility of a complete shift to hydrogen and other green energy sources, emphasizing the continuing relevance of fossil fuels in meeting the world's growing energy demands. According to T Koshy, Managing Director and CEO of the government-run Open Network for Digital Commerce (ONDC), robust participation is coming from a diverse range of small businesses across India, including farmer producer organizations, Kanjeevaram silk weavers, and self-help groups such as Kerala's Kudumbashree.Koshy elaborated on the inception and rapid growth of ONDC, an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce. Conceptualized amid the pandemic three years ago, ONDC was officially registered as a company in 2021 and began operations in select areas of Bengaluru by the end of 2022."In the last year and a half, ONDC has achieved significant traction," Koshy said. "We've scaled from just 1,000 transactions 15 months ago to a staggering 9 million transactions in May. Similarly, our merchant base has expanded from 500 in January 2023 to 550,000 currently. Notably, about 85 percent of these are small and micro enterprises, including taxi drivers and artisans".ONDC aims to revolutionize digital commerce by broadening the reach of retail e-commerce in India, especially to small and micro enterprises that have traditionally been excluded from digital marketplaces.Koshy highlighted that ONDC's appeal extends beyond major urban centers, with significant activity in tier II and III cities. "Approximately 40-45 percent of our transactions are related to mobility services, which are highly hyperlocal and currently operational in 8-9 cities. Moreover, around 65 percent of daily transactions come from tier II and III cities", Koshy noted. He added that transactions have taken place in roughly 1,000 cities across the country.
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