According to Market Research Future, the india oil gas projects market is experiencing significant growth as the country pursues ambitious energy security goals and infrastructure development initiatives. India’s oil and gas projects market encompasses a wide range of activities, including exploration and production, refining, pipeline infrastructure, storage facilities, and export terminals. The market was valued at approximately USD 36.65 billion in 2024 and is projected to reach USD 75.0 billion by 2035, exhibiting a compound annual growth rate of 6.73% during the forecast period 2025-2035.
The India oil and gas projects market is characterized by a comprehensive value chain spanning upstream exploration and production, midstream transportation and storage, and downstream refining and petrochemicals. Upstream held 69.1% of the Indian oil and gas market revenue in 2025, driven by the critical role of exploration and production in meeting domestic energy needs . Offshore drilling holds the largest share within the drilling segment, driven by the ability to access deep-sea reserves and the advanced technology employed in these operations. Onshore drilling is rapidly gaining traction as the fastest-growing segment, supported by rising demand for energy security and local resource development, with favorable government policies and advancements in fracking technologies propelling its growth.
The India oil and gas projects market is driven by rising domestic demand for energy, government initiatives and policy support, technological innovations in exploration, and investment in infrastructure development. India’s energy consumption is projected to reach 1.20 billion tons of oil equivalent (Mtoe), driven by rapid urbanization and industrial growth, with the International Energy Agency anticipating that India’s energy demand will grow by 3% annually . The government has introduced several initiatives, including the Hydrocarbon Exploration and Licensing Policy (HELP), which aims to attract investments by streamlining the licensing process and providing fiscal incentives . The adoption of advanced technologies such as seismic imaging and drilling automation is revolutionizing the sector, with investments in digital technologies expected to exceed INR 5,000 crore .
A transformative development in the India oil and gas projects market is the government’s Samudra Manthan National Offshore Exploration Scheme, approved with a total outlay of INR 84,084 crore (approximately USD 8.8 billion) to be implemented until FY2030-31 . The initiative is intended to accelerate offshore oil and gas exploration, improve domestic production, and strengthen India’s long-term energy security. The scheme covers the entire offshore exploration value chain, including large-scale acquisition, processing and interpretation of seismic data, accelerated deepwater and ultra-deepwater exploratory drilling, and scientific drilling in frontier basins . The Centre plans to cover up to 50% of deepwater drilling costs, capped at INR 675 crore per well, with around INR 43,200 crore allocated for drilling 60 deepwater exploration wells . The government expects the initiative to help add more than 600 Million Metric Tonnes of Oil Equivalent to hydrocarbon reserves, generate employment, and encourage indigenous manufacturing under the Make in India and Atmanirbhar Bharat initiatives .
The India oil and gas projects market is witnessing significant activity from both public and private sector players. ONGC, India’s largest state-run explorer, plans to invest about INR 1 lakh crore over five years to drill 87 deepwater and ultra-deepwater wells in India’s offshore basins through FY’31 . Vedanta Oil and Gas Ltd. is expanding India’s upstream production pipeline through a diversified portfolio spanning Rajasthan, Assam, the North-East, and shallow water offshore assets, while also monitoring deepwater opportunities for sustained long-term growth . The company’s current average gross operated production is around 80,000 boe/d, targeting 300,000 boe/d in the near term and 500,000 boe/d over the longer term .
The competitive landscape features major international players including ExxonMobil, Royal Dutch Shell, BP, Chevron, TotalEnergies, and ConocoPhillips. The market is characterized by dynamic competitive strategies, with companies focusing on digital transformation, sustainability, and strategic partnerships. Recent industry developments include ExxonMobil’s significant investment in a new offshore drilling project in the Krishna-Godavari basin, Royal Dutch Shell’s launch of a new digital platform to optimize supply chain operations, and BP’s strategic partnership with a local renewable energy firm to develop hybrid energy solutions in India. The India oil and gas projects market outlook is positive, with rising domestic demand for energy, focus on renewable energy integration, and investment in infrastructure development driving growth. New opportunities lie in investment in advanced drilling technologies to enhance efficiency, expansion of LNG infrastructure to meet rising demand, and integration of renewable energy with oil and gas operations. By 2035, the market is expected to achieve robust growth, reflecting India’s evolving energy dynamics and strategic imperative for energy security.
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