India’s Energy Sector Poised for Growth Amid Challenges: Hardeep Singh Puri

Mangaluru : India is well-positioned to meet its energy security needs as it advances towards becoming a $4 trillion economy much earlier than 2027, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said on Saturday.

Delivering the keynote address on energy security at the 7th Mangaluru Literary Fest, Puri expressed optimism about India’s economic trajectory. "Even the International Monetary Fund (IMF) projects India to reach this milestone by 2027, but at the current pace, we are likely to get there much earlier," he said.

Energy Consumption and Growth

Puri highlighted India’s increasing energy demands, noting that 67 million people visit fuel stations, EV charging points, and compressed biogas and natural gas outlets daily. "This surge in energy consumption aligns with the International Energy Agency's projection of a 25% growth in energy demand," he said. However, he pointed out that India's energy dependence remains high, with 85% reliance on fossil fuels and 50% on natural gas.

Refuting concerns about fossil fuel shortages, Puri attributed such narratives to oil-producing nations' economic strategies. "The world has no shortage of fossil fuels, except for a few exporting countries trying to present them as scarce for cartelisation," he observed.

Oil Diplomacy and Refining Capacity

India has expanded its refining capacity from 5 million barrels per day to 5.4 million, with plans to scale up to 6–7 million barrels. "Despite OPEC's production cuts, India has maintained steady oil imports, sourcing from the Middle East, the United States, Suriname, and Russia," he noted. Puri also pointed to the United States' plan to release 13 million barrels, underscoring fuel availability.

Affordability and Sustainable Energy

Addressing concerns over fuel affordability, Puri said the government has taken steps to ease the burden on consumers. "Under Prime Minister Narendra Modi, excise duty on petroleum has been reduced three times, and BJP-ruled states have cut Value Added Tax (VAT) to match the excise reductions," he stated.

He also highlighted India's push towards renewable energy through the Surya Ghar programme, which promotes solar energy adoption. "The initiative is not just making India a green energy consumer but also a producer, boosting the adoption of electric vehicles and sustainable energy sources," he added.

Green Hydrogen and Biofuel Expansion

India is making significant strides in green hydrogen, with pump storage capacity increasing to 5 million metric tonnes. Puri suggested this figure is conservative, as installed production capacity exceeds current estimates.

The NITI Aayog is also exploring biofuel innovations, he said. As a member of the Global Biofuel Alliance, India is opening new biofuel trade routes and encouraging research in the sector. "We are seeing breakthroughs in bamboo-based biofuel from the Northeast and Parali-based biofuel from Uttar Pradesh," he noted, adding that startups are emerging as key players in biofuel production.

With India’s focus on sustainability and energy security, the country is set to navigate challenges while unlocking new opportunities in the energy sector, Puri concluded.