Page 44 - Policy Economic Report - October 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Refinery as key examples of the sector’s forward momentum. With over 100 biogas plants operational
and 70 more in the pipeline, he said that India is building an ecosystem that connects technology,
investment, and sustainability.

Shri Puri concluded that as India advances toward becoming a USD 10 trillion economy, its energy sector
will not only meet domestic requirements but also serve global markets. The Minister expressed
confidence that by 2035, India will move from being the world’s fourth-largest to possibly the second-
largest refining power. He emphasized that India’s young demography, rising energy demand, and
proactive policy environment will ensure that the country not only participates in but actively shapes the
global energy future.

India’s Growth Linked to Energy and Maritime Strength: Shri Hardeep Singh Puri

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, addressed the ‘Revitalizing India’s
Maritime Manufacturing Conference’ held in Mumbai as part of India Maritime Week 2025. He said
India’s rapid economic growth is closely connected to the progress of its energy and shipping sectors,
which together serve as strong pillars of national development.

The Minister said that India’s economy is growing fast, with the GDP now around 4.3 trillion dollars.
Nearly half of this comes from the external sector, which includes exports, imports, and remittances.
This shows how important trade—and therefore shipping—is for India’s economic progress.

Speaking about the energy sector, Shri Puri said India currently consumes about 5.6 million barrels of
crude oil per day, compared to 5 million barrels four and a half years ago. At the present rate of growth,
the country will soon reach 6 million barrels per day. He shared that according to the International
Energy Agency, India is expected to contribute nearly 30 percent of the global rise in energy demand in
the next two decades, an increase from the earlier estimate of 25 percent. He added that this growing
energy requirement will naturally increase India’s need for ships to move oil, gas, and other energy
products across the world.

The Minister Informed that during 2024–25, India imported around 300 million metric tons of crude and
petroleum products and exported about 65 million metric tons. The oil and gas sector alone accounts for
nearly 28 percent of India’s total trade by volume, making it the largest single commodity handled by
ports. He said that India currently meets about 88 percent of its crude oil and 51 percent of its gas needs
through imports, which shows how important the shipping industry is for the country’s energy security.

He explained that the freight cost forms a significant part of the total import bill. Oil marketing
companies pay around 5 dollars per barrel to transport crude from the United States and about 1.2
dollars from the Middle East. Over the last five years, Indian PSUs such as IOCL, BPCL, and HPCL have
spent nearly 8 billion dollars on chartering ships, an amount that could have built a new fleet of Indian-
owned tankers.

Shri Puri pointed out that only about 20 percent of India’s trade cargo is carried on India-flagged or
India-owned vessels. He said this presents both a challenge and an opportunity for India to increase its
ship ownership and manufacturing capacity. The government is working on steps like aggregating PSU

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