India to upgrade for world as global capacity declines: Union minister Hardeep Puri

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri. File | Photo credit: ANI

India is poised to strengthen its position as a global refining hub, with its crude processing capacity set to rise to 300 million tonnes a year by 2030, even as refinery capacity declines in Europe and other parts of the Western world, Union Minister Hardeep Singh Puri said on Tuesday (Oct 27, 2026).

India’s refining capacity is currently around 290 million tonnes per annum and is expected to expand further by expanding existing facilities and adding new projects, the Union Petroleum Minister said at a press conference on the sidelines of the 29th Energy Technology and Innovation Summit in South Goa.

He said the expansion will enable India to not only meet its domestic energy requirements but also supply more petroleum products to international markets. “With a big increase in refining capacity, we will be in the fortunate position of not just refining for ourselves, but for the world,” Mr Puri added.

He contrasted India’s expanding refining infrastructure with a decline in global capacity, particularly in Europe, where he estimated that at least 2,50,000 bpd of refining capacity is being lost annually.

“Others are going down. Ours are going up,” the minister said, pointing to the expansion of Indian refineries at a time when smaller, less efficient facilities in other markets struggle with logistics costs and operational inefficiencies.

Mr Puri said India’s refining capacity will reach 300 million tonnes a year by 2030, although the projection may not include all greenfield refineries coming up.

He said several existing refineries were expanding capacity, with three-million-ton-a-year facilities up to six million tons and those with six-million tons to nine million tons.

The Minister further stated the expansion plans of individual refineries, which are intended to underline India’s ability to increase the supply of petroleum products, including diesel, to domestic and overseas markets.

Responding to questions on whether India would need to curtail exports to ensure domestic availability, Mr Puri said the country’s expanding manufacturing capacity would enable it to cater to both markets. “We are able to deliver more domestically and more internationally,” he said.

Mr. Puri said Indian refiners planned to increase capacity and production even as growth in domestic diesel consumption was muted, allowing the industry to prepare for higher output as demand patterns evolve.

He also pointed to the absence of new greenfield refineries in the Western world in recent decades, which contrasts with India’s continued investment in refining infrastructure.

The minister said that the direction of government policy and the expansion of India’s energy sector will further strengthen the country’s position in global markets. “Besides conventional petroleum products, initiatives like Samudra Manthan and GOBARdhan (Galvanising Organic Bio-Agro Resources Dhan) are also expected to gain momentum,” he said, adding that these developments will complement the country’s expanding energy infrastructure.

Published – 27 Oct 2026 15:18 IST