News Brief
India On Track To Become World’s Second-Largest Refining Power By 2035: Petroleum Minister Puri
Union Minister for Housing and Urban Affairs Hardeep Singh Puri
India’s petroleum and energy sector is undergoing a major transformation that could position the country as a global refining and energy hub, said Union Minister for Petroleum and Natural Gas Hardeep Singh Puri at the Energy Technology Meet 2025 in Hyderabad on Tuesday (28 October).
Addressing the inaugural session, Puri said India is poised to contribute 30–33 per cent of global energy demand growth in the coming decades.
While several refineries worldwide face closure, India’s refining capacity—currently 258 million metric tonnes per annum (MMTPA)—is expected to touch 310 MMTPA by 2030 and expand further to 400–450 MMTPA in the long term.
The minister highlighted India’s rapid progress in biofuel blending, noting that the country achieved 10 per cent ethanol blending ahead of schedule in 2022 and has advanced the 20 per cent target to 2025–26.
He said this success demonstrates India’s ability to meet ambitious climate and energy goals through well-designed policies.
India is also making strong strides in green hydrogen, with recent tenders from IOCL and HPCL reducing prices from $5.5/kg to $4/kg, a major step toward commercial viability.
Puri said green hydrogen, natural gas, and biofuels will form the core of India’s energy transition, supported by initiatives such as the Global Biofuels Alliance.
India, already the fourth-largest refining nation and among the top seven exporters of petroleum products, exported over $45 billion worth of petroleum goods in FY 2024–25 to more than 50 countries.
Domestic petroleum consumption has also risen from 5 million barrels per day in 2021 to 5.6 million barrels per day, and is expected to touch 6 million barrels per day soon.
The minister said India’s petrochemical intensity index has increased from 7.7 per cent to 13 per cent, reflecting growth potential as the country integrates petrochemical production into refining operations to enhance value addition and export competitiveness.
Initiatives such as the Production Linked Incentive (PLI) scheme and the National Centre for Catalyst Research aim to strengthen domestic manufacturing and research in key energy technologies.
Reiterating India’s balanced approach to Atmanirbharata, Puri said self-reliance must go hand-in-hand with global competitiveness and technological efficiency.
Recalling India’s refining journey from the Digboi refinery in 1901 to modern mega facilities, Puri cited projects like the Barmer Refinery and Andhra Refinery as examples of ongoing expansion.
He noted that over 100 biogas plants are operational, with 70 more in the pipeline, strengthening India’s clean energy ecosystem.
Puri said that as India advances toward becoming a $10 trillion economy, the country's energy sector will not just meet domestic needs but also serve global markets.
He expressed confidence that India could become the second-largest refining power by 2035.
He concluded that India’s young population, rising energy demand, and proactive policies would ensure the nation’s leadership role in shaping the global energy future.
