India is positioning itself as a global investment destination in the oil and gas sector, signaling a window for Gulf SWFs and national energy companies. The country is targeting USD 500 bn in total energy investment, with USD 100 bn specifically earmarked for the oil and gas sector by 2030, Prime Minister Narendra Modi said during an address at India Energy Week.

Why it matters: As Western majors pivot toward green energy, India is aggressively expanding its fossil fuel infrastructure, aiming to increase refining capacity to 300 mtpa from 260 mtpa as it looks to secure a top position globally in terms of refining capacity. This reinforces the India-MENA corridor’s significance as an important axis for global hydrocarbon demand.

UAE Industry Minister Sultan Al Jaber confirmed the scale of the prospect, noting that India has become a “decisive driver” of global energy demand during his speech at the event. He flagged three critical demand signals for Gulf suppliers: India’s air travel will jump 150% in 15 years, data center capacity will increase 10-fold, and the number of air conditioners will explode, with 10 new units sold every second globally by 2050.

India has set a firm target to meet 15% of its total energy demand through natural gas by 2030, up from the current 6.7%. To hit this, Modi stressed that India requires a vast pipeline network along with construction of LNG terminals and increased regasification capacity at ports. The government projects that natural gas consumption will grow nearly 60% by 2030, primarily driven by the expansion of City Gas Distribution networks — a sector Modi flagged as “highly attractive” for foreign investment.

Regulatory de-disking: The government has sweetened the offer by operationalizing the Oilfields Amendment Act 2025 — a reform which strips away complex mining leases in favor of a streamlined lease system in the oil and gas sector designed to de-risk foreign investments.

India is also targeting to expand the scope of its oil and gas exploration to 1 mn sq km by 2030 with more than 170 exploration blocks allocated in the Indian Ocean’s Andaman and Nicobar basin. “If you invest in India’s exploration sector, your company’s profitability is bound to improve,” Modi said.

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