Growth of Oil and Gas Industry - Infographic

Primary energy demand is expected to nearly double to 1,123 million tonnes of oil equivalent, as the country's gross domestic product (GDP) is expected to increase to US$ 8.6 trillion by 2040.

Advantage India

Growing
Demand

* Oil demand in India is projected to register a 2x growth to reach 11 million barrels per day by 2045.

* Diesel demand in India is expected to double to 163 MT by 2029-30, with diesel and gasoline covering 58% of India’s oil demand by 2045.

* Crude oil imports increased by 4.2% to 242.4 MT in FY25 compared to rise by 9.7 MT from previous year.

* India’s natural gas consumption is projected to grow by nearly 60% by 2030, reaching 297 million standard cubic metres per day (mmscmd), up from 188 mmscmd in FY24.

Rapid
Expansion

* India aims to commercialize 50% of its SPR (Strategic Petroleum Reserves) to raise funds and build additional storage tanks to offset high oil prices.

* Indian refining capacity has increased from 256.8 Million Metric Tonne Per Annum (MMTPA) in FY24 to 258.1 MMTPA as of FY25.

* The industry is expected to attract Rs. 218,475 crore (US$ 25 billion) investment in exploration and production. Refining capacity in the country is expected to increase to 667 MTPA by 2040.

*India plans a capex push of Rs. 3,28,227 crore (US$ 37 billion) to transform itself into a petrochemicals powerhouse by 2030, aiming to supply as much as one-third of global capacity additions.

Supportive FDI
Guidelines

* The Government has allowed 100% Foreign Direct Investment (FDI) in upstream and private sector refining projects.

Policy
Support

* The Union Budget FY26 has allocated Rs. 5,597 crore (US$ 640.46 million) to the petroleum and natural gas (PNG) ministry for phase II of the Indian Strategic Petroleum Reserves Ltd (ISPRL) project, aimed at turning two vast underground caverns into petroleum storage facilities.

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Last updated: Nov, 2025

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