Although, renewable energy growth (especially solar) has been incredible in India, the country is still the third-largest oil consumer in the world (4.14/million barrels per day, 4% share of the world total). It is understandable that Indian solar industry still hasn’t grown large enough to phase out conventional energy usage and satisfy country’s growing energy demand (Installed solar capacity ~16.6 GW out of total energy generation capacity 330 GW). Therefore, the country needs a balance between conventional and renewable energy to sustain present energy requirements at hand. And continuous fall in crude oil prices from FY 12-13 to FY 15-16 allowed the country to import crude oil at a profitable margin.
However, the current rise in crude oil prices (from $39.9 in April 2016 to $52.7 in December 2016) and predictions of continuity in price hike highlights addition of forex outflow and reiterates the importance of solar energy growth.
