PM Modi Flags $500 Billion Investment Opportunity in India’s Energy Sector, Pushes for Energy Independence

Prime Minister Narendra Modi on Tuesday said India’s energy sector presents investment opportunities worth $500 billion and urged global investors to partner with the country, emphasising that India is steadily moving towards energy independence. He highlighted that India is emerging as a reliable and attractive destination for long-term energy investments.

“India is strengthening global partnerships across the entire energy value chain,” Modi said, inviting international companies to participate in the country’s long-term energy growth story as it balances rapid economic expansion with sustainability objectives.

He said energy independence will be achieved by building a robust domestic energy ecosystem capable of meeting the nation’s growing demand.

“This will be driven by expanded exploration activities, increased refining capacity, and integrated LNG and downstream infrastructure, while ensuring affordable supply chains and globally competitive energy exports,” the Prime Minister added.

Modi said India is targeting $100 billion in investments in its oil and gas sector by the end of this decade, as the country opens up exploration blocks, expands refining capacity, and scales up gas infrastructure to cater to rising domestic and global energy demand.

He stressed that India’s status as the world’s fastest-growing major economy is translating into sustained growth in energy consumption, positioning the country as a key destination for long-term energy investments.

“India today offers immense opportunities for the global energy sector,” Modi said, adding that the government is actively working across the energy value chain to strengthen energy security while supporting global supply requirements.

As part of the $100 billion investment push, the Prime Minister said India has significantly liberalised its exploration and production (E&P) regime. The government plans to expand the country’s exploration area to nearly one million square kilometres, with more than 170 hydrocarbon blocks already awarded. He identified the Andaman and Nicobar basin as India’s next major hydrocarbon frontier.

Modi said a series of reforms—including a substantial reduction in ‘no-go’ areas and amendments to acts and rules based on industry feedback—have improved ease of doing business and enhanced project viability in exploration. “If you invest in India’s exploration sector, your company’s profitability is bound to improve,” he said.

India to be the world’s largest refiner
On the downstream front, Modi underlined India’s growing refining capacity as a core pillar of its energy strategy. India currently has a refining capacity of about 260 million metric tonnes per annum (MMTPA), making it the world’s second-largest refiner. The government is working to expand capacity beyond 300 MMTPA, which he said would further strengthen India’s position in global petroleum product markets.

“We are second in the world in terms of refining capacity. Soon, we will be number one in the world,” Modi said.

India is already among the top five exporters of petroleum products, with exports reaching more than 150 countries.

LNG to play greater role in energy mix
Natural gas, particularly liquefied natural gas (LNG), will play an increasingly important role in India’s energy mix, the Prime Minister said. The government has set a target to meet 15 per cent of India’s total energy demand through LNG, creating opportunities across the LNG value chain, including import terminals, storage, transportation, and distribution.

He also highlighted growing investment opportunities in gas-based transportation, port infrastructure, and city gas distribution networks, as India expands access to cleaner fuels across urban and industrial centres. A ₹70,000 crore programme to strengthen domestic shipbuilding has also been launched, supporting energy logistics and maritime capabilities.

Modi said India Energy Week has quickly emerged as a global platform for dialogue and action on energy security and sustainability, bringing together policymakers, industry leaders, and investors from nearly 100 countries.