India Poised to Become Global Refining and Energy Hub
India's petroleum and energy sector is expanding rapidly, with refining capacity set to increase from 258 million metric tons per annum (MMTPA) to 310 MMTPA by 2030 and a long-term goal of 400–450 MMTPA. India is expected to contribute 30–33% of global energy demand growth, aiming to be among the top three refining hubs globally while advancing ethanol blending targets and increasing petrochemical integration.
India’s petroleum and energy sector is undergoing transformative growth, positioning the country as a key global energy leader. Currently holding a refining capacity of 258 MMTPA, India plans to increase this to 310 MMTPA by 2030 and eventually target 400–450 MMTPA, which will place it among the top three oil refining hubs worldwide. This expansion is critical as about 20% of global refining capacity (over 100 refineries) is expected to close by 2035, opening the market for India’s dominance. The country is projected to drive 30–33% of global energy demand growth over the coming decades, contrasting with the slow global growth and refinery closures elsewhere. India has also made significant strides in ethanol blending, increasing the target from 5% in 2006 to 10% achieved in 2022 ahead of schedule, and accelerating the goal for 20% blending from 2030 to 2025–26. The refining sector contributes nearly 20% of India’s revenue and is well integrated with petrochemicals, where utilization is currently below global averages, showing strong growth potential. Innovation and domestic production drive the energy value chain, with 80% now produced locally, supported by Production Linked Incentive schemes and dedicated research centers. Export-oriented, India supplies over 50 countries with petroleum products valued at around USD 45 billion annually, underlining its global competitiveness and strategic energy vision.
