PM Modi Unveils $500 Billion Energy Investment Opportunities at Goa Summit
Prime Minister Narendra Modi on Tuesday extended a compelling invitation to global industry leaders to "make, innovate and invest in India", spotlighting investment opportunities worth a staggering US$500 billion in the nation's dynamic energy sector. Addressing the international audience via video conference at the inauguration of the fourth edition of India Energy Week in Goa, Modi positioned India's energy ambitions as central to its overall economic growth trajectory.
Comprehensive Value Chain Opportunities
Modi elaborated that India offers significant prospects across the entire energy value chain. This includes diverse areas such as oil exploration, refining, petrochemicals, hydrocarbons, and LNG infrastructure development, including networks and ports. He emphasized that as the world's fastest-growing major economy, India's demand for energy products is on a steady upward climb, creating a robust domestic market. Furthermore, the country presents strong opportunities for investors to serve global markets from its strategic base.
The inaugural event was graced by the presence of Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, UAE Minister for Industry and Advanced Technology Sultan Al Jaber, and Goa Chief Minister Pramod Sawant.
Reforms Express and Ambitious Targets
Describing India's policy environment, Modi stated the country is on a "reforms express", with continuous changes in Acts and rules driven by stakeholder feedback from previous editions of India Energy Week. He specifically highlighted the Samudra Manthan Mission, which has substantially opened up the exploration sector by reducing no-go areas, thereby improving prospects for investors.
The Prime Minister outlined ambitious national targets, stating that by the end of this decade, India aims to raise investment in the oil and gas sector to $100 billion and expand exploration coverage to one million square kilometres. He revealed that more than 170 oil and gas blocks have already been awarded, with the Andaman and Nicobar basin emerging as the next promising hydrocarbon frontier.
Refining Capacity and LNG Expansion
On the refining front, Modi noted that India's current capacity stands at 260 million metric tonnes per annum (MMTPA), with active efforts underway to elevate it beyond 300 MMTPA. This expansion, he asserted, provides a strong competitive advantage to investors. He also highlighted India's position among the top five global exporters of petroleum products, supplying to over 150 countries worldwide.
Regarding liquefied natural gas (LNG), the Prime Minister pointed to rising domestic demand creating major opportunities in transportation and infrastructure. India is advancing plans to build LNG carriers domestically, supported by a newly launched Rs 70,000-crore shipbuilding programme. He flagged substantial investment potential in:
- LNG terminals
- Regasification facilities
- Pipeline networks
- The expanding city gas distribution network
Modi underscored India's target to meet 15% of its total energy demand through LNG, stressing the need to strengthen the entire natural gas value chain to achieve this goal.
Strategic Trade Agreements and Global Confidence
In a significant geopolitical note, the Prime Minister referenced the landmark free trade agreement signed with the European Union just a day earlier, describing it as the "mother of all deals". This pact, encompassing nearly 25% of global GDP and about one-third of global trade, is set to complement India's existing agreements with Britain and the European Free Trade Association (EFTA).
Modi expressed confidence that this comprehensive deal will not only boost manufacturing within India but also expand the services sector, while simultaneously strengthening global business and investor confidence in the Indian economy's long-term prospects.
