Over the next two decades, India is poised to become one of the largest global economies and energy markets. We forecast India's energy demand to increase from 791 Mtoe in 2014 to almost 1,700 Mtoe by 2035, making it the largest growth region in terms of energy demand after China. The new government's focus on expanding the manufacturing sector, together with accelerating urbanisation and rising household incomes will translate to higher energy consumption across all sectors. However, its energy sector is challenged on two fronts – a complex regulatory and policy-making environment and 1.2 billion people with a tremendous appetite for energy that the country's resources cannot sufficiently provide. These challenges, if not overcome, could derail India's economic development.