As the world’s fifth-largest economy, India faces immense energy demands, with its share in global primary energy consumption expected to double by 2035. The hydrocarbon industry has played a crucial role in meeting this growing energy requirement. India’s oil demand continues to rise at an annual rate of 3-4%, with the country currently importing around 83% of its crude oil needs and 47% of its natural gas consumption. As the third-largest consumer and importer of oil, India’s hydrocarbon sector has far-reaching economic implications due to its strategic linkages with other industries.
Hydrocarbons
ITA > Hydrocarbons
Indian Hydrocarbon Industry: Meeting Energy Demand and Advancing Aatmanirbhar Bharat
To bridge the gap between energy supply and demand, the Government of India is actively accelerating exploration and production activities. A series of transformative reforms have been implemented across the upstream, midstream, and downstream sectors of the hydrocarbon industry. These reforms are driven by key objectives, including increasing domestic oil and gas production, attracting investments, generating employment, enhancing transparency, and minimizing bureaucratic hurdles.
Transitioning Towards Clean and Sustainable Energy
India’s energy sector is undergoing a significant transition toward cleaner and more sustainable sources, aligning with the national goal of achieving net-zero emissions by 2070. However, this shift presents both opportunities and challenges for the hydrocarbon industry, particularly in terms of maintaining energy security. A balanced transition must ensure that energy remains both accessible and affordable. In this context, global cooperation through international dialogue and policy coordination between energy producers and consumers can play a crucial role in strengthening energy security frameworks.
Biofuels hold immense potential in shaping a sustainable energy future. Recognizing this, the government has introduced groundbreaking policy initiatives, including revisions to the National Biofuel Policy, advancing the target of 20% ethanol blending with petrol from 2030 to 2025-26. This accelerated timeline aims to reduce import dependency while promoting cleaner energy alternatives.
Aatmanirbhar Bharat and the Future of Hydrocarbons
Under the Aatmanirbhar Bharat Abhiyan, the government is striving to make India more self-reliant in the global energy landscape. The ITA Hydrocarbon Committee, in alignment with this vision, actively supports policy advocacy and initiatives to reduce import dependency while driving progress in key areas such as:
➤ Hydrocarbon Exploration & Production – Enhancing domestic production to meet rising energy needs.
➤ Energy Security – Strengthening the country’s energy resilience through diversified sources.
➤ Decarbonization – Promoting cleaner technologies and sustainable practices in the oil and gas sector.
➤ Ease of Doing Business – Streamlining regulatory frameworks to attract investments and boost efficiency.
➤ Energy Transition – Facilitating a smooth shift toward renewable and alternative energy solutions.
By focusing on these critical areas, India is laying a strong foundation for long-term energy security and sustainability, ensuring that the hydrocarbon industry continues to support the nation’s growth while moving toward a cleaner and more self-reliant future.