India's Energy Industry

India: demand for investment

India is one of the world’s most populous and rapidly growing countries, and the energy industry is a major contributor to the country’s economic and social development, underpinning industrial and manufacturing growth, and rising demand for power and transportation.

The country is highly dependent on oil imports, which are expected to remain structurally significant over the long term despite the reinforcement of domestic exploration and production efforts to boost internal oil and gas supply and enhance energy security. Policy reforms have aimed to simplify licensing regimes and improve investment incentives through updated pricing mechanisms, fiscal advantages and the easing of constraints on foreign asset ownership in the upstream and downstream value chains.

India’s hydrocarbon resources are concentrated in its western and offshore basins, with Mumbai’s offshore and the onshore areas of Gujarat, Rajasthan and the Assam–Arakan basin being long-established producing regions. Many of the country’s producing assets are mature, and natural decline rates have prompted emphasis on EOR, redevelopment and advanced reservoir management techniques.

The upstream sector is led by the state-owned Oil and Natural Gas Corporation (ONGC), which accounts for roughly 70% of output. Oil India Limited, also state-owned, and a number of private domestic companies account for much of the balance. Through policy reforms and investment incentives, India seeks to encourage private and foreign participation in the sector to increase exploration and technology deployment.

Downstream infrastructure has expanded steadily to support rising demand for refined products and oil imports. India is now one of the world’s largest refining hubs, with a mix of state-owned and private operators supplying both domestic and export markets.

Natural gas has become an increasingly important focus of India’s energy strategy, with policy objectives aimed at raising gas’s share in the national energy mix over the medium term. New regasification terminals along India’s eastern and western coastlines are expanding LNG import capacity, and investments in cross-country pipelines and regional distribution networks are improving access for industrial users, power utilities and distribution companies.

India’s renewables sector is expanding rapidly in alignment with energy transition objectives. Total installed generation capacity reached approximately 220 GW in 2025, with solar accounting for around 100 GW. National energy and climate commitments call for up to 500 GW of non-fossil fuel electricity capacity by 2030 to enhance energy security and reduce carbon intensity.