India’s role in the global energy order and the role of India’s oil & gas companies

India stands at a defining moment in its economic and energy journey. As one of the world’s fastest-growing major economies, India’s growth is being propelled by expanding industrial activity, rapid urbanisation, large-scale infrastructure creation, and a young, aspirational population. This sustained momentum has positioned India as the world’s third-largest energy consumer, with incremental demand growth among the highest globally.  

How India meets this rising energy requirement—reliably, affordably, and sustainably—will have far-reaching implications not only for National development, but also for global energy markets.  

India as a pillar of global energy demand  

At a time when energy demand in several mature economies has plateaued or moderated, India continues to anchor global energy demand growth. This reality is reshaping crude oil flows, LNG trade patterns, downstream investments, and long-term supply strategies worldwide.  

With its strategic geographic location, a large and increasingly complex refining ecosystem, and deep integration with international energy markets, India has emerged as a critical hub in global energy trade. However, rising energy and oil import dependence also increases India’s exposure to global price volatility and geopolitical uncertainties—underscoring the strategic importance of energy security and self-reliance.  

Energy security as a national imperative  

For a country that ranks among the world’s largest importers of crude oil and natural gas, energy security extends well beyond supply availability. It encompasses affordability, resilience, infrastructure robustness, and preparedness against external shocks.  

Continued efforts to strengthen domestic infrastructure, expand storage and logistics, enhance refining flexibility, and diversify supply sources are essential to sustaining long-term economic growth and macroeconomic stability. These efforts must be complemented by the simultaneous advancement of multiple applications—ranging from green energy solutions and capacity ramp-up initiatives to cleaner fuels and emerging energy vectors— 

which together are both necessary for resilience and rich with opportunity. In this context, energy security remains inextricably linked to national security and economic sovereignty.  

Managing the energy transition—India’s balanced path  

While hydrocarbons continue to anchor India’s energy system, the accelerating adoption of alternative energy is no longer optional. It is being shaped by climate commitments, energy security considerations, rapid technological progress, and the improving cost competitiveness of clean energy solutions.  

India’s way forward, however, is not a binary choice between oil and alternatives. It is a calibrated pursuit of hydrocarbons and alternative energy pathways in parallel. For a developing economy of India’s scale and complexity, the energy transition must remain orderly, inclusive, and affordable—ensuring universal energy access while progressively reducing emissions.  

Role of India’s oil & gas companies  

In this evolving landscape, India’s oil and gas companies will play a central role in meeting the nation’s energy needs. Beyond supplying fuels, they are key enablers of economic activity across transportation, manufacturing, agriculture, and services.  

At the same time, India’s 2070 net-zero commitment and company-level decarbonisation targets are reshaping sectoral strategies. Oil and gas companies are increasingly leveraging their scale, technical expertise, and capital strength to invest in biofuels, green hydrogen, renewable energy, energy efficiency, and emissions-reduction initiatives.  

Collaboration between governments, industry, and international partners will be critical to ensuring a balanced, secure, and resilient energy transition.  

HPCL’s role in powering India’s energy future  

Hindustan Petroleum Corporation Limited (HPCL), as one of India’s leading oil and gas companies, is firmly aligned with this national and global energy agenda. HPCL is taking decisive steps to reliably meet the nation’s growing energy needs through expansion across  

its core refining and marketing businesses, while simultaneously foraying into emerging and green energy opportunities.  

In recent years, HPCL has enhanced its refining capacities, including the commissioning of the Residue Upgradation Facility at the Visakh Refinery. This landmark project enhances refining flexibility, improves product yields, and maximises value from every barrel of crude.  

HPCL is also setting up a greenfield refinery-cum-petrochemical complex in Rajasthan through HPCL Rajasthan Refinery Limited, a joint venture with the Government of Rajasthan. The Chhara LNG terminal in Gujarat significantly enhances gas-based energy access, strengthens supply diversification, and supports India’s cleaner energy transition. These initiatives are complemented by sustained efficiency improvements, digital transformation, and technology-led decision-making across the value chain.  

Value creation and market confidence  

The outcomes of this integrated approach are clearly reflected in HPCL’s value creation for investors. In 2025, the company’s market capitalisation crossed ₹1 lakh crore—underscoring enhanced shareholder value and sustained market confidence.  

This milestone reflects market recognition of HPCL’s ability to effectively combine scale, operational excellence, and technology adoption, while positioning itself for future energy transitions.  

Looking ahead  

As India advances on its path towards becoming a developed economy, the role of resilient, responsible, and future-ready energy companies will only grow. HPCL remains committed to meeting the nation’s energy needs through its core strengths in conventional fuels, while steadily expanding into cleaner and emerging energy domains.  

Supported by digital transformation, operational excellence, and innovation-led growth, this balanced approach enables HPCL to enhance reliability, competitiveness, and sustainability in a rapidly evolving global energy landscape—powering India’s growth while responsibly managing the energy transition.