India took a major step toward energy self-sufficiency with the passage of the Oilfields (Regulation and Development) Amendment Bill, 2024, in the Lok Sabha. Announcing the milestone, Hardeep Singh Puri, India's Union Minister for Petroleum and Natural Gas, emphasized that the amendments will strengthen the energy sector, ensure policy stability, and attract global investments, all under the leadership of Prime Minister Narendra Modi.
The reforms align India's Exploration and Production (E&P) framework with global best practices by decriminalizing provisions, extending lease periods, and enabling international arbitration. These measures are expected to enhance Ease of Doing Business (EoDB) in the hydrocarbon sector, providing regulatory clarity and boosting investor confidence.
With the global energy landscape shifting rapidly, India's reliance on conventional fuels remains crucial. The country currently consumes 5.5 million barrels of crude oil per day, up from 5 million barrels just three and a half years ago. At the current pace, consumption is projected to reach 6.5–7.0 million barrels per day, reinforcing the need for a robust domestic production ecosystem to support India's ambition of becoming Viksit Bharat (Developed India).
A significant policy shift has been the opening of previously restricted exploration zones—an additional 1 million sq. km of sedimentary basins, previously classified as "No Go" areas, has now been made available for oil and gas exploration. Since 2014, 76% of India's total exploration area has been actively utilized, sending a strong signal to potential investors and helping reduce import dependence.
"Energy consumption is a strong indicator of economic growth," Puri stated, adding that the bill's passage is a decisive step in India's journey toward energy security and economic resilience.
With an expanding domestic exploration and production framework, India is set to reduce reliance on imports and establish itself as a major player in the global energy landscape.
