Structural and macro‐economic changes in India and the implications for the residential energy demand

India, as a rising economic power, has undergone significant macro‐economic and structural changes in recent decades. The accelerated economic growth in recent times has brought wide‐ranging changes in life styles and behaviors of its growing population. At the same time, the population is undergoing a structural change and as this continues in the future, the country has the potential to reap the population dividend. As a consequence of these changes, the country is experiencing increased migration to urban areas, visible signs of consumerism in the fast‐growing middle‐class segment of the population, and an increasing trend of mimicking international styles. This paper provides an overview of the macro‐economic and structural changes in India and considers the implications of such changes on India's residential energy needs. It suggests that life‐style changes will have a significant implication on Indian future energy demand but there is a window of opportunity to follow a low‐carbon pathway by adopting ‘smart’ technologies and creating efficient infrastructure. However, it requires a coordinated effort at various levels. WIREs Energy Environ 2014, 3:535–539. doi: 10.1002/wene.108 This article is categorized under: Energy Policy and Planning > Economics and Policy