India’s energy and petroleum landscape is entering a phase of rapid transformation that could soon establish the country as one of the world’s foremost refining and energy hubs, said Union Minister for Petroleum and Natural Gas Hardeep Singh Puri at the Energy Technology Meet 2025 held in Hyderabad on Tuesday (28 October).
Addressing the gathering, the minister highlighted that India is expected to account for 30–33 per cent of the global energy demand growth in the coming decades. While many refineries worldwide are being shut down, India’s refining capacity currently at 258 million metric tonnes per annum (MMTPA) is projected to reach 310 MMTPA by 2030 and could further expand to 400–450 MMTPA in the longer term.
Puri also drew attention to India’s success in biofuel blending, noting that the country achieved 10 per cent ethanol blending ahead of its original timeline in 2022 and has now advanced the 20 per cent target to 2025–26. This milestone, he said, reflects India’s capability to meet ambitious clean energy and climate objectives through structured policies and coordinated efforts.
India is simultaneously accelerating its push toward green hydrogen, with recent tenders from Indian Oil Corporation (IOCL) and Hindustan Petroleum Corporation (HPCL) bringing down prices from USD 5.5 per kg to USD 4 per kg, a key step towards making the fuel commercially viable. Green hydrogen, biofuels, and natural gas, Puri added, will form the three main pillars of India’s energy transition, supported by initiatives such as the Global Biofuels Alliance.
Already the fourth-largest refining country and one of the top seven exporters of petroleum products, India exported over USD 45 billion worth of petroleum goods to more than 50 countries in FY 2024–25. Domestic consumption has also risen sharply from 5 million barrels per day in 2021 to 5.6 million barrels per day, with projections suggesting a rise to 6 million barrels per day in the near future.
Puri noted that India’s petrochemical intensity index has climbed from 7.7 per cent to 13 per cent, underlining the country’s growing focus on integrating petrochemical production with refining processes to enhance value addition and global competitiveness.
The minister underscored the government’s commitment to innovation and indigenization, stating that India has achieved around 80 per cent import substitution across the energy value chain. Schemes such as the Production Linked Incentive (PLI) and the establishment of the National Centre for Catalyst Research are expected to further boost domestic manufacturing and R&D in key energy technologies.
Emphasizing a balanced vision of Atmanirbhar Bharat, Puri said that true self-reliance must align with global competitiveness, technological excellence, and sustainability.
Reflecting on India’s century-long refining journey from the Digboi refinery established in 1901 to modern mega-projects like the Barmer Refinery and the Andhra Refinery, he highlighted ongoing expansion efforts and the rise of bioenergy initiatives. Over 100 biogas plants are already operational, with another 70 under development, strengthening India’s green energy ecosystem.
As India advances toward its goal of becoming a USD 10 trillion economy, Puri affirmed that the country’s energy sector will not only fulfill domestic needs but also play a key role in meeting global demand. With its young population, growing consumption, and forward-looking energy policies, India, he said, is well on course to become the world’s second-largest refining powerhouse by 2035 and a pivotal force in shaping the future of global energy.