India is stepping up efforts to attract foreign direct investment (FDI) into its oil and gas sector through policy reforms, financial incentives and greater collaboration with international energy companies. The government is looking to strengthen domestic exploration, expand refining capacity and position the country as a global manufacturing hub for the oil and gas industry.
Petroleum Secretary Neeraj Mittal outlined the investment push at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on November 3. He said India was seeking partnerships across upstream, midstream and downstream activities to bring international expertise and capital into the sector.
Deep-water exploration gets government support
A key part of India’s strategy is the Samudra Manthan programme, designed to encourage exploration in deep-water and ultra-deepwater areas where drilling involves significant financial and technical risks.
Under the initiative, the government is offering support of up to 50% of eligible deep-water exploration drilling costs, subject to a ceiling of $71 million per well.
The Union Cabinet has approved investments of up to ₹84,000 crore over five years under the National Offshore Exploration Scheme. The initiative aims to support offshore exploration and add more than 600 million metric tonnes of oil equivalent to India’s reserves by 2030-31.
The government hopes the financial support will reduce investment risks and encourage international companies with advanced offshore exploration capabilities to participate in India’s energy sector.
Refining and petrochemicals offer investment opportunities
India is also looking to attract investment in refining, petrochemicals and downstream manufacturing as domestic demand for petroleum products continues to grow.
The country’s refining capacity currently stands at around 267 million metric tonnes per year. It is expected to approach 290 million tonnes in the coming year and reach 320 million tonnes by 2032.
Vikas Kaushal, Chairman and Managing Director of Hindustan Petroleum Corporation, said India’s established refining infrastructure provides a strong base for further investment in downstream industries.
He also highlighted opportunities in petrochemicals, noting that India imports around 9-10 million tonnes of petrochemical products annually. Expanding domestic production could reduce import dependence and create opportunities for global investors.
Energy transition opens new avenues
Alongside conventional oil and gas investments, India is presenting its energy transition as another area for international cooperation.
The government is looking to attract foreign companies with expertise in alternative fuels, waste management, energy infrastructure and advanced technologies.
These partnerships are expected to support India’s broader energy security objectives while creating opportunities for international manufacturers, technology providers and project developers.
India seeks stronger global energy partnerships
India’s investment outreach reflects its efforts to strengthen domestic energy production and reduce dependence on imported resources. By combining regulatory reforms, financial incentives and infrastructure expansion, the government aims to make the sector more attractive to international investors.
The next challenge will be translating policy changes and investment interest into actual exploration projects, higher domestic production and long-term partnerships across the oil and gas value chain.
