S. Ahmad
India’s energy landscape is undergoing a structural transformation at a moment when global energy systems are under unprecedented strain. Energy today is not merely a matter of fuel supply; it lies at the heart of economic growth, social development, technological progress, and national security. From powering industries and transportation to enabling healthcare, agriculture, and digital connectivity, energy determines the quality of life and the trajectory of development. As one of the world’s fastest-growing economies and the third-largest consumer of crude oil, India stands at the centre of the global energy transition debate.
India’s energy demand is expected to grow faster than that of almost any other major economy over the next decade. Projections indicate that by 2050, India alone will account for more than 23 per cent of global incremental energy demand, the highest share for any country. This reality presents a dual challenge: meeting rising energy needs to sustain economic growth while simultaneously reducing carbon intensity in line with global climate commitments.
In response, India has pursued a multi-pronged strategy that combines policy reform, infrastructure expansion, diversification of energy sources, and targeted clean energy interventions. A significant milestone was achieved in June 2025 when India reached 50 per cent of its cumulative installed electricity capacity from non-fossil fuel sources—five years ahead of its 2030 target under the Paris Agreement’s Nationally Determined Contribution. This achievement reflects not a single policy choice, but a broader recalibration of India’s energy governance and investment priorities.
A key pillar of this transition has been reforming the hydrocarbons sector to improve efficiency, transparency, and investor confidence. India’s energy system spans upstream exploration and production, midstream transportation and storage, and downstream refining and distribution. Reforms across all three segments have sought to strengthen supply security while enabling a gradual shift towards cleaner fuels.
In the upstream segment, the Oilfield (Regulation and Development) Amendment Act, 2025 marked a decisive step in modernising India’s regulatory framework. By simplifying procedures, enabling integrated energy development, and improving policy clarity, the Act aims to enhance domestic oil and gas production and reduce import dependence. This was complemented by the Petroleum and Natural Gas Rules, 2025, which introduced a transparent and predictable regulatory regime for exploration and production. Together, these reforms have strengthened ease of doing business and attracted investment under the Hydrocarbon Exploration and Licensing Policy, through which 172 blocks covering over 3.78 lakh square kilometres have been awarded, mobilising committed investments of approximately USD 4.36 billion. Exploration activity has expanded through seismic surveys, drilling programmes, and government-funded initiatives, reinforcing India’s energy security.
Midstream and downstream reforms have focused on improving fuel transportation, pricing equity, and market access. The introduction of the Unified Pipeline Tariff in 2023 under the principle of “One Nation, One Grid, One Tariff” addressed longstanding regional disparities in gas transportation costs. By replacing distance-based tariffs with a uniform pricing mechanism, the policy has improved affordability and competitiveness of natural gas across the country. By December 2025, nearly 90 per cent of operational pipelines were covered under this framework, strengthening the viability of a national gas market.
Alongside governance reforms, India has undertaken an unprecedented expansion of energy infrastructure. The nationwide fuel retail network has more than doubled over the past decade, growing from around 52,000 outlets in 2014 to over one lakh by 2025. This expansion has significantly improved last-mile fuel availability, particularly in rural and remote regions. Cleaner fuel infrastructure has also seen rapid growth, with CNG stations increasing from fewer than 1,000 to over 8,400, while PNG household connections have risen from 25 lakh to more than 1.59 crore.
Under the vision of “One Nation, One Gas Grid,” the natural gas pipeline network has expanded to over 25,400 kilometres, with an additional 10,459 kilometres under construction. This integrated grid has enabled near-100 per cent geographical coverage under the City Gas Distribution programme, laying the foundation for a transition towards a gas-based economy that offers lower emissions compared to conventional fossil fuels.
Energy infrastructure development has extended beyond conventional fuels. Petroleum marketing systems have been modernised through widespread digital payment integration, with over 90,000 retail outlets now equipped with POS facilities. Door-to-door fuel delivery has expanded through the commissioning of more than 3,200 fuel bowsers, improving access in underserved areas. Electric mobility infrastructure has also grown rapidly, with nearly 9,000 EV charging stations installed at fuel retail outlets under FAME Phase-II, alongside more than 18,500 additional charging stations established by oil marketing companies.
Logistics and transport corridors have received focused attention through the development of over 500 APNA GHAR truckers’ wayside amenities, enhancing road safety and worker welfare. Integrated Energy Stations—numbering over 1,000 as of November 2025—now offer conventional fuels alongside alternative energy options, reflecting a more diversified and future-ready approach to mobility infrastructure.
As physical infrastructure has expanded, India’s energy strategy has increasingly focused on lowering carbon intensity while ensuring affordability and reliability. Biofuels have emerged as a critical bridge in this transition, enabling emission reductions without requiring large-scale changes to existing vehicle or fuel systems. Since 2014, the ethanol blending programme has delivered foreign exchange savings of approximately ₹1.59 lakh crore, reduced CO₂ emissions by over 813 lakh metric tonnes, and substituted 270 lakh metric tonnes of crude oil.
The National Policy on Biofuels, advanced in 2022, brought forward the target of 20 per cent ethanol blending in petrol to Ethanol Supply Year 2025–26. By July 2025, average blending had already reached 19.05 per cent, with monthly levels touching 19.93 per cent, indicating near-achievement of the national target. These gains underline how biofuels can simultaneously support energy security, rural incomes, and climate objectives.
Clean energy transition at the household level has been equally critical. The Pradhan Mantri Ujjwala Yojana has expanded access to clean cooking fuel to over 10.41 crore households as of January 2026. Recognising that access alone is insufficient without affordability, the government has supported sustained LPG usage through targeted subsidies of ₹300 per cylinder for up to nine refills annually. As a result, average LPG consumption among beneficiaries has increased significantly, reflecting deeper and more durable adoption of clean cooking practices.
India is also advancing emerging low-carbon pathways such as sustainable aviation fuel. Indicative blending targets have been set for international flights beginning in 2027, and Indian Oil Corporation has become the first Indian entity to receive international sustainability certification for SAF production, signalling readiness to participate in global aviation decarbonisation efforts.
Beyond domestic reforms, India’s role in global energy governance has expanded steadily. Participation in platforms such as the Global Biofuel Alliance and the G20 Energy Transitions Working Group reflects India’s emphasis on inclusive and pragmatic transition pathways that recognise differing national circumstances. These engagements allow India to share lessons from large-scale implementation while contributing to collective responses on energy security and climate action.
India Energy Week has emerged as a significant platform in this context. The 2026 edition, being held in Goa from 27 to 30 January, brings together participants from over 120 countries at a time of heightened geopolitical and climate uncertainty. Since its launch in 2023, the forum has evolved into a space for dialogue across the global energy value chain, bringing policymakers, industry leaders, financial institutions, and technology providers together to examine issues of security, affordability, investment, and transition.
The discussions at India Energy Week reflect India’s growing influence in shaping global energy conversations, particularly from the perspective of emerging economies balancing development priorities with climate commitments. Strategic and technical sessions address challenges across oil and gas, renewables, hydrogen, biofuels, carbon capture, power systems, and future mobility, reinforcing India’s role as both a consumer and a contributor to global energy solutions.
In conclusion, India’s energy transition is characterised by scale, implementation capacity, and inclusivity. Through governance reforms, infrastructure expansion, cleaner fuels, and international engagement, India has strengthened energy access while reducing emissions intensity. As energy demand continues to rise, India’s experience demonstrates that economic growth and climate responsibility need not be mutually exclusive. The country’s evolving energy pathway offers valuable lessons for other developing economies navigating the complex transition toward a sustainable and secure energy future.
The article is based on the inputs and background information provided by the Press Information Bureau (PIB) Author is Writer, Policy Commentator. He can be mailed at kcprmijk@gmail.com
Comments are closed.