India accounts for 4.5% of industrial energy use worldwide. This share is projected to increase as the economy expands rapidly. The level of industrial energy efficiency in India varies widely. Certain sectors, such as cement, are relatively efficient, while others, such as pulp and paper, are relatively inefficient. Future energy efficiency efforts should focus on direct reduced iron, pulp and paper and small-scale cement kilns because the potentials for improvement are important in both percentage and absolute terms. Under business as usual, industrial energy use is projected to rise faster than total final energy use. A strong focus on energy efficiency can reduce this growth, but CO2 emissions will still rise substantially. If more substantial CO2 emissions reductions are to be achieved then energy efficiency will need to be combined with measures that reduce the carbon intensity of the industrial fuel mix. (C) 2009 Published by Elsevier Ltd.