India’s Petroleum Minister, Hardeep Singh Puri, announced on Tuesday, September 16, 2025, that the nation has significantly strengthened its ability to withstand global economic and geopolitical storms. This enhanced resilience is thanks to a growing influx of crude oil from the Western Hemisphere, with even more natural gas anticipated to enter the market from 2026-27 onwards.
Addressing the current complex geopolitical landscape at KPMG’s annual ENRich 2025 energy conclave, Minister Puri explained that while global turbulence persists, India is focused on managing issues within its direct control. He highlighted that the availability of sufficient global oil supplies contributes significantly to India’s current resilience.
India’s oil industry operates within a challenging geopolitical environment, largely shaped by U.S. President Donald Trump’s imposition of 50% tariffs on Indian goods this past July. These measures also included a 25% penalty for India’s ongoing crude oil purchases from Russia. Despite talks between Washington’s chief trade negotiator, Brendan Lynch, and India’s Rajesh Agrawal, the issue of Russian oil imports remains a sensitive topic between the two nations.
Beyond geopolitical concerns, Minister Puri also highlighted India’s impressive refining capabilities. He proudly noted that India currently boasts the world’s fourth-largest refining capacity. Furthermore, he projected a swift expansion, with plans to increase the current capacity from approximately 260-270 million metric tonnes per annum (MMTPA) to a robust 320 MMTPA through existing arrangements.
Bolstering Strategic Reserves
During the same event, Prasad Panicker, Executive Chairman of the private refiner Nayara Energy, affirmed that Indian refineries possess ample flexibility to manage ongoing geopolitical shifts. He acknowledged the disturbances in supply chains, technology transfer, and product types, but underscored the remarkable adaptability of Indian refineries to process diverse crude oil varieties.
However, Panicker emphasized the critical need for India to expand its strategic reserves. This, he argued, would act as a buffer, preventing immediate disruptions from global market fluctuations.
He clarified that strategic reserves shouldn’t be limited to crude oil. Instead, they should encompass essential chemicals, catalysts, and other vital components to safeguard operational continuity. Panicker lamented the current reliance on foreign imports for these crucial materials, despite India’s significant refining capacity. He stressed the long-term goal of fostering an indigenous ecosystem for these supplies, which would further strengthen the nation’s energy resilience.