### Energy Consumption and Intensity

1. Sectoral Consumption: The industrial sector in India accounts for approximately 52% of
commercial energy consumption, highlighting its significant role as an energy user.

2. Per Capita Consumption: Despite being one of the lowest in the world, India's per capita energy
consumption is growing as its economy develops.

3. Energy Intensity: Energy intensity, which measures energy consumption per unit of GDP, is
notably high in India compared to both developed and developing countries. For instance, it is 3.7
times higher than Japan's, 1.55 times higher than the United States', and exceeds the averages for
Asia and the world.

### Regulatory Changes and Liberalization

1. Pre-Reform Era: Before the economic reforms of the 1990s, India's energy sector was fully
regulated by the government.

2. Post-Reform Era: Economic liberalization has gradually opened up the sector to private sector
participation, particularly in coal, oil, gas, and electricity. This shift aimed to improve efficiency and
attract investment.

3. Deregulation Efforts: The government has moved towards deregulating energy prices from the
previous Administered Price Mechanism (APM), with coal and petroleum products already
deregulated. However, cooking fuels like Kerosene and LPG remain heavily subsidized, impacting
fiscal deficits for Oil Marketing Companies (OMCs).

### Natural Gas Sector

1. Development Stage: India's natural gas sector has seen significant development efforts, with
initiatives like the New Exploration and Licensing Policy (NELP) allowing private players to participate
in exploration and production.

2. Price Regulation: Initially regulated due to security concerns and price sensitivity, natural gas
prices from private exploration have been linked to market forces, aiming to attract investment and
improve sector dynamics.
### City Gas Distribution

1. Expansion: The city gas distribution network has expanded, aiming to provide cleaner energy
solutions to urban areas.

2. Regulation: This sector has also seen regulatory changes to encourage private investment and
improve distribution efficiency.

### Challenges and Implications

1. Subsidies and Fiscal Deficits: Continued subsidies on cooking fuels and controlled prices on
transportation fuels (gasoline and diesel) pose challenges, leading to fiscal deficits for OMCs and
impacting broader economic management.

2. Energy Efficiency: High energy intensity relative to GDP signifies a need for improved energy
efficiency measures across sectors to sustain economic growth without proportional increases in
energy consumption.

In summary, while India's energy sector has undergone significant reforms to promote efficiency and
attract investment, challenges remain regarding subsidy management, regulatory frameworks, and
achieving sustainable energy use amidst economic growth.