India's energy sector offers $500-billion investment opportunity, says Modi

Prime Minister Narendra Modi on Tuesday called upon global energy players to invest in India's energy sector across exploration and downstream sectors, and said the country offers investment opportunities worth $500 billion.

The country is now moving towards energy independence, as it has in the past few years ensured energy security, Modi said, addressing the inaugural session of the India Energy Week 2026.

He said the government aims to attract $100 billion in investments in the oil and gas exploration space by 2030.

India is the third-largest importer of oil, sourcing about 90% of its crude oil requirements from other countries. The ongoing geopolitical tensions, including in West Asia, US intervention in Venezuela, and sanctions on key Russian oil suppliers, have forced Indian refiners to diversify their import basket.

“The energy sector is at the centre of our aspirations. It has opportunities worth $500 billion. So, I call upon all players to make in India, innovate in India, scale with India, and invest in India,” he said.

“India is developing an energy sector ecosystem capable of meeting local demand and, through affordable refining and transportation solutions, making exports highly competitive for the world,” he added.

Apart from efforts to diversify energy sourcing, India has also been trying to increase domestic hydrocarbon production. He also highlighted efforts to open up its exploration sector and referred to the Samudra Manthan Mission aimed at boosting deep-sea exploration.

"Andaman and Nicobar basin is emerging as the next hydrocarbon hope," the prime minister said. Under the Hydrocarbon Exploration and Licensing Policy (HELP), the government has allocated four blocks for oil and gas exploration in the Andaman-Nicobar Basin, covering approximately 23,261 square kilometres," he said.

Furthermore, another four blocks with a total area of 47,058 square kilometres have been offered in the Andaman Basin, he added.

India’s Hydrocarbon Resource Assessment Study (HRAS) estimates hydrocarbon resources of 371 million metric tonnes of oil equivalent (MMTOE) in the Andaman-Nicobar Basin.

In September 2025, state-run Oil India Ltd announced “occurrence of natural gas” in an offshore block, which the company had won under the Open Acreage Licensing Policy (OALP).

Highlighting that liquefied natural gas (LNG) demand in the country is rising and that the country has set a target to meet 15% of its total energy demand through LNG, the prime minister emphasized the need to work across the entire LNG value chain.

“India is working to build the vessels required for LNG transportation domestically, supported by a recently launched ship-building programme worth ₹70,000 crore,” he said, while underlining investment opportunities in constructing LNG terminals at Indian ports, as well as in regasification projects.

Modi highlighted investment opportunities in LNG pipelines, city gas distribution and the petrochemical space.

Noting that India is among the top five exporters of petroleum products in the world, with export coverage across 150 countries, he said India can develop the world's largest refining capacity and the government is making efforts to increase India's refining capacity to 300 million tonnes from the current 260mt.

“Today's India is riding on the reforms express and undertaking rapid reforms across every sector," said Modi, adding that the government has carried out several reform measures to boost domestic hydrocarbons and ensure a transparent and investor-friendly environment for global collaborations.

Some of the reform measures include the Oilfields (Regulation and Development) Amendment Act, 2025, and the Petroleum and Natural Gas Rules, 2025, which have significantly strengthened the country's upstream ecosystem.

Addressing the event, Union minister for petroleum and natural gas Hardeep Singh Puri also noted that India's energy demand will continue to expand, with all sources set to grow.

By 2050, India’s share of global energy demand is projected to rise by nearly 30-35%, reaching around 10% of the total global energy demand.

“Yet, with per capita energy consumption still at only about 40% of the global average, India’s growth journey remains both necessary and responsible,” Puri said.

On the government's efforts to curb the impact of global volatility, Puri said: "Despite prolonged global volatility, India has shielded its citizens from sharp price shocks."

While fuel prices rose significantly in many major economies after 2021, prices in Delhi in 2025 remained lower than in 2021, he said, while adding, for over 100 million Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, LPG prices have been maintained at around $5.5-$6 per cylinder, “among the lowest globally”.

Rituraj Baruah is in Panaji on the invitation of the Union ministry of petroleum and natural gas.