India Poised to Lead Global Energy Growth; Hardeep Singh

The petroleum and energy sector of India is witnessing a historic transformation, poised to redefine global energy dynamics, said Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, while addressing the inaugural session of the Energy Technology Meet in Hyderabad today. Calling it the era of India’s Energy Transformation, the Minister highlighted the nation’s rapid strides in refining, biofuels, green hydrogen, and petrochemicals—driven by visionary policies and unwavering innovation.

India: A Bright Spot in the Global Energy Landscape

While the global energy market faces stagnation and refinery closures, India is emerging as a rare bright spot. Shri Puri noted that India is expected to account for 30–33% of global energy demand growth in the coming decades. With a current refining capacity of 258 million metric tonnes per annum (MMTPA)—set to rise to 310 MMTPA by 2030 and further to 400–450 MMTPA in the long term—India is on track to become one of the top three refining hubs globally.

The Minister pointed out that nearly 20% of the world’s refining capacity—over 100 refineries—could shut down by 2035, while India continues to expand. “Our refining strength will be a cornerstone of India’s energy resilience and economic growth,” he said.

Biofuel Revolution: From Vision to Reality

Highlighting India’s remarkable achievements in biofuel blending, Shri Puri traced the country’s progress from a modest 5% ethanol blending target in 2006 to achieving 10% blending five months ahead of schedule in 2022. The government has since advanced its 20% blending goal to 2025–26, showcasing the country’s ability to achieve ambitious sustainability targets.

“India’s biofuel success story is a testament to how sound policy frameworks, innovation, and industry collaboration can accelerate India’s Energy Transformation,” he noted.

India: Refining Excellence and Global Reach

India’s refineries today are globally integrated and export-ready, enabling the nation to emerge as the fourth-largest refining country and among the top seven exporters of petroleum products, exporting to over 50 countries. In FY 2024–25, petroleum exports surpassed USD 45 billion, contributing nearly one-fifth of India’s total revenue.

Domestic consumption, too, has seen strong growth—rising from 5 million barrels per day in 2021 to 5.6 million barrels currently, with expectations to touch 6 million barrels soon. Shri Puri credited India’s robust economy and rising per capita income for this steady demand surge.

Petrochemicals and Integration for the Future

The Minister emphasized that India’s petrochemical utilization remains only one-third of the global average, signaling vast untapped potential. The petrochemical intensity index has already improved from 7.7% to 13%, reflecting the sector’s rapid growth.

Future refinery expansions, he said, will focus on integrated petrochemical complexes—enhancing efficiency, value addition, and competitiveness in the global market. “Integration is the new paradigm—refineries must evolve into flexible, high-value ecosystems,” he remarked.

Indigenization and Innovation: Core of India’s Energy Vision

Addressing the theme of Atmanirbhar Bharat, Shri Puri noted that India has achieved nearly 80% import substitution across the energy value chain. While critical components like catalysts still rely on imports, he stressed a balanced approach that prioritizes efficiency and competitiveness.

Initiatives such as the Production Linked Incentive (PLI) Scheme and the establishment of a National Centre for Catalyst Research are driving research, development, and domestic manufacturing of advanced energy technologies.

India: Green Hydrogen and Renewable Momentum

Shri Puri expressed optimism about India’s green hydrogen revolution, citing significant cost reductions from USD 5.5/kg to nearly USD 4/kg in recent tenders by IOCL and HPCL. He emphasized that green hydrogen, biofuels, and natural gas will form the “trinity of clean fuels” powering India’s Energy Transformation.

The Global Biofuels Alliance, led by India, is set to enhance global trade and adoption of Sustainable Aviation Fuel (SAF) and other green energy solutions, positioning India as a global clean energy hub.

Balanced Transition: Growth with Sustainability

India’s energy roadmap balances traditional fuel reliance with a strong shift toward renewables. The share of natural gas in the energy mix is being raised from 6% to 15%, while renewable energy and green hydrogen projects are expanding at record pace.

“India’s transition is pragmatic, inclusive, and sustainable,” said Shri Puri. “We are decarbonizing without destabilizing growth.”

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