India is a large importer of energy in FY14, its net energy imports were 6.3% of GDP. Without energy imports, India would have a current account surplus of 4.6% of GDP, as per Goldman Sachs.

Goldman Sachs said India's annual energy imports could rise to USD 230 billion by FY23 from USD 120 billion currently, driven by economic growth, greater industrialization and urbanization.

'Despite an increase in energy intensity, our projections show that energy imports as a share of GDP have likely peaked, and can moderate over the next decade, based on the assumption of subdued commodity prices,' it opined.

Energy imports can be reduced further by switching from oil to natural gas and improving conservation, it said.

Further Goldman Sachs said, 'We show that reforms in the energy sector could reduce India's annual energy import bill by USD 40 billion by FY23. Energy imports in a reform scenario could come down to about 4% of GDP, from 6.3% of GDP currently.'

If India were to improve its energy efficiency by 15% over the next ten years, it could save USD 32 billion annually by FY23, as per Goldman Sachs.

The reduction in energy imports as a share of GDP could improve India's current account on a structural basis, which in turn could be positive for the INR over the medium term, it opined.