Page 13 - Policy Economic Report - Feb 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

behind low-emissions sources of generation continues to 2030, by which time renewables and nuclear
are together set to generate 50% of global electricity, up from 42% today.

Natural gas-fired output is also set to grow through 2030, supported by rising electricity demand in the
United States and the continuing shift from oil to gas for power in the Middle East. Coal-fired generation
loses ground globally as renewables expand, returning to 2021 levels by the end of the decade. As a result,
global CO2 emissions from electricity generation are expected to remain roughly flat between now and
2030.

The report emphasizes that these trends – growing demand, an increasingly weather-dependent mix of
power generation sources, and evolving electricity consumption patterns and technologies – require a
rapid and efficient expansion of both electricity grids and system flexibility. Today, more than 2,500
gigawatts worth of projects – encompassing renewables, storage, and projects with large loads, such as
data centers – are currently stalled in connection queues worldwide.

As the expansion of grids advances, deploying grid-enhancing technologies and implementing regulatory
reforms that enable more flexible grid connections and usage could allow for the integration of up to
1,600 gigawatts of queued projects in the near term. Together, these measures would allow the grid to
be used more efficiently and unlock substantial capacity.

5. Indian Economy
India’s economic growth

First Advance Estimates of Gross Domestic Product, 2025-26- Key highlights are given below:-

Key Highlights:

• Real GDP has been estimated to grow by 7.4% in FY 2025-26 against the growth rate
of 6.5% during FY 2024-25.

• Nominal GDP is estimated to grow at 8.0% in FY 2025-26.

• Buoyant Growth in Services Sector has been found to be a major driver in the estimated Real GVA
growth rate of 7.3% in FY 2025-26.

• Financial, Real Estate & Professional Services and Public Administration, Defence & Other
Services in the Tertiary Sector have been estimated to attain a substantial growth rate of 9.9% at
Constant Prices in FY 2025-26.

• Trade, Hotels, Transport, Communication & Services related to Broadcasting Sector has been
estimated to grow by 7.5% at Constant Prices in FY 2025-26.

• Manufacturing and Construction in the Secondary Sector has been estimated to achieve a growth
rate of 7.0% at Constant Prices in FY 2025-26.

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