Context

• In recent years, India has witnessed a historic transformation across multiple sectors, with energy at the heart of its rise.
• As of 2025, India has overtaken Japan to become the world’s fourth-largest economy, with its GDP surpassing $4.3 trillion, more than double its size in 2014.
• This economic leap is not an accident but the outcome of a meticulously executed decade-long strategy under Prime Minister Modi, grounded in reform, resilience, and a push toward self-reliance.
• At the core of this strategy is the energy sector, which has undergone a sweeping transformation and now serves as a pillar of India’s economic and strategic ascent.

The Strategic Reorientation of India’s Energy Landscape

• India's energy sector has evolved into a robust and strategic force. With a GDP growth rate of 6.7% in the last quarter, India stands out as the fastest-growing major economy.
• A large portion of this momentum is driven by a forward-looking and pragmatic energy policy designed to address the trilemma of availability, affordability, and sustainability.
• India has already emerged as the third-largest consumer of energy and oil, the fourth-largest refiner, and the fourth-largest importer of LNG globally.
• By 2047, its energy demand is projected to increase 2.5 times, with 25% of the global incremental energy demand emanating from India.
• In response, the Modi administration has implemented a comprehensive strategy: diversification of sources and suppliers, expansion of domestic production, acceleration of renewable transitions, and enhanced affordability.

The Transformation of India’s Energy Landscape

• Strengthening Upstream Capabilities
  • The upstream oil and gas sector has witnessed a dramatic expansion.
  • Exploration acreage has doubled from 8% in 2021 to 16% in 2025, with an ambitious target of covering one million square kilometres by 2030.
  • This expansion has been facilitated by decisive policy reforms, including a 99% reduction in ‘No-Go’ areas, simplification of licensing through the Open Acreage Licensing Policy (OALP), and revenue-sharing models that incentivize production while reducing compliance burdens.
• Technological Advancements
  • Technological advancements such as the National Seismic Programme, Mission Anveshan, and geophysical surveys have enabled exploration in frontier basins.
  • These efforts have resulted in more than 25 hydrocarbon discoveries across multiple basins.
  • ONGC’s partnerships with global companies like BP are significantly boosting output, exemplified by a projected 44% increase in oil and 89% in gas production from the Mumbai High fields.
• Expanding Downstream Infrastructure
  • India’s downstream energy infrastructure has scaled impressively.
  • The country now boasts 24,000 kilometres of product pipelines, 96,000 retail outlets, and substantial strategic and LPG storage capacities.
  • Over 67 million people access fuel daily, an indication of the system’s robustness and reach.
  • City gas distribution has expanded from 55 areas in 2014 to 307 in 2025.
  • The number of piped natural gas (PNG) connections has surged from 25 lakh to 1.5 crore, supported by over 7,500 compressed natural gas (CNG) stations.
  • Affordability is maintained through unified pipeline tariffs and targeted pricing reforms, ensuring even remote states are connected to the grid.

Greening the Energy Mix and Institutional Reforms

• Greening the Energy Mix: Biofuels and Hydrogen
  • The green energy transition is a hallmark of India’s modern energy policy.
  • Ethanol blending has grown from a mere 1.5% in 2013 to nearly 20% in 2025, drastically reducing emissions and saving ₹1.26 lakh crore in foreign exchange.
  • The parallel development of the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative has accelerated the deployment of compressed biogas (CBG), with over 100 plants already operational and a 5% CBG blending mandate set for 2028.
  • Green hydrogen has emerged as another cornerstone of India’s renewable thrust.
  • With 8.62 lakh tonnes of production capacity and 3,000 MW of electrolyser tenders awarded, India is positioning itself as a global hub.
  • Major oil public sector undertakings like IOCL, BPCL, and HPCL are leading large-scale projects, including landmark developments like the green hydrogen unit at Numaligarh Refinery in Assam.
• Institutional Reforms and Systemic Overhaul
  • India's systemic approach to energy sector transformation is unparalleled.
  • The Oilfields (Regulation and Development) Amendment Act of 2024 introduced hybrid leases that allow co-location of renewable and hydrocarbon projects.
  • Discovered small fields (DSF) now operate under simplified, low-compliance contracts, unlocking resources previously considered uneconomical.
  • Digital tools and integration efforts, particularly through the PM Gati Shakti initiative, have added efficiency and transparency.
  • Over one lakh energy assets and pipelines have been digitally mapped and integrated with the National Master Plan.
  • This has enabled route optimisation and cost savings, as evidenced in key projects like the Indo-Nepal pipeline and the Samruddhi Utility Corridor.

The Central Principle of India’s Energy Policy: Consumer-Centric Approach and Energy Sovereignty

• Despite international volatility and a 58% increase in global LPG prices, Indian consumers, particularly PMUY beneficiaries, continue to pay subsidised rates.
• This consumer-focused model is strengthened by stable fuel pricing mechanisms, targeted subsidies, and excise cuts that have insulated the population from global shocks.
• The shift from energy anxiety to energy confidence signifies a fundamental change in the nation’s psyche.
• Energy is no longer seen merely as a commodity; it is now a strategic enabler of India’s sovereignty, development, and global stature.

Conclusion

• India’s energy sector is a testament to the transformative power of strategic vision, robust policy, and technological innovation.
• From expanding domestic production and infrastructure to aggressively pursuing green energy alternatives, India has laid the foundation for energy self-reliance and sustainability.
• As the world grapples with energy insecurity and climate change, India’s model offers a blueprint for balanced, inclusive, and resilient energy growth.