India Targets $100B Oil Investment to Cut Imports

Daniel Foster

Energy

Remarks of Officials

Commodity

Political

Economic

Summary:

India's $100B energy plan unlocks vast new areas, aiming to significantly reduce foreign oil reliance.

Prime Minister Narendra Modi announced an ambitious plan to attract US$100 billion (RM395.45 billion) in investment into India's oil and gas sector by the end of the decade. Speaking via video at the India Energy Week conference, Modi outlined a strategy centered on expanding drilling into previously restricted territories.

To support this push, India also plans to increase its refining capacity by one million barrels per day, reaching a total of six million. This move signals a long-term commitment to domestic energy processing and provides a stable demand outlook for potential explorers.

Tackling India's Heavy Reliance on Foreign Oil

The new initiative aims to address a long-standing economic vulnerability. For decades, India's own oil production has failed to keep pace with its surging demand, forcing the country to import 90% of its crude oil and half of its natural gas needs.

This heavy reliance on foreign energy is a significant drain on the nation's foreign exchange reserves. In December alone, oil and gas imports comprised 17% of the total value of goods shipped from overseas.

Currently, India's domestic oil output averages just 550,000 barrels a day—comparable to the combined production of OPEC members Congo and Gabon, but only a small fraction of the country's total consumption.

A New Frontier: Opening Vast Areas for Exploration

To reverse this trend, India is opening nearly one million square kilometers of previously ring-fenced areas to oil and gas exploration. This new territory is in addition to the 170 blocks already available for drilling.

A key component of this strategy is the National Deepwater Exploration Mission, which was launched last August. The mission's goals include:

• Unlocking between 600 million and 1,200 million tonnes of oil and gas reserves.

• Drilling 40 new wildcat wells to discover new fields.

• Doubling the country's reserves by 2032.

• Tripling domestic output by 2047.

• Ultimately slashing import dependency by 88%.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Risk Disclosure

The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.

Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.

Recent Searches

Top Searches

Markets

Analysis

User

24/7

Economic Calendar

Education