India's Energy Ambitions: Ethanol Success and Future Shifts

India achieved 20% ethanol blending by 2025, saving USD 19.3 billion in foreign exchange and significantly benefiting farmers. Union Minister Hardeep Singh Puri discussed strategies for energy transition at India Energy Week. Plans include raising nuclear capacity and expanding bioenergy, as India's energy demand is set to rise by 2050.

India's effort in increasing ethanol blending to nearly 20% by the year 2025, has resulted in saving around USD 19.3 billion in foreign exchange and has provided direct payments over USD 15 billion to farmers over the last ten years, announced Hardeep Singh Puri, the Union Minister for Petroleum and Natural Gas. The statement was made during the opening of the 4th India Energy Week (IEW) 2026 held in Goa, detailing India's approach to align energy transition with economic security and aiming for clean energy goals. The Minister emphasized India's commitment to achieving its compressed biogas targets amid a broader transition to bioenergy.

Puri pointed out the significance of conventional energy in meeting the increasing global demand, despite significant growth in renewable energy, which now constitutes almost one-third of the global electricity production. He highlighted that global energy demand is projected to rise by 30-35% by 2050, with India's share reaching around 10% of the total.

To accommodate the anticipated demand, India's government is increasing its energy capacity across all sectors, with plans to boost nuclear power to 100 GW by 2047. This expansion is backed by legislative support through the Atomic Energy Bill 2025 SHANTI. Puri also mentioned major reforms in the upstream petroleum sector, notably the Oilfields (Regulation and Development) Amendment Act, 2025, which paved the way for more stable, long-term single petroleum leases.

Discussing fuel costs, Puri noted that while global prices have surged since 2021, Delhi's prices have remained lower than pre-2025 rates. For over 100 million PMUY beneficiaries, LPG prices are kept at some of the lowest levels globally. The petroleum industry now represents 28% of India's trade weight at ports, with an USD 8 billion government investment option in shipbuilding identified, including 60 vessels needed for oil and gas trading.

India's Global Capability Centres (GCCs), according to Puri, are forecasted to reach USD 105 billion in revenue by 2030, supported by almost 2,400 centers and employing over 2.8 million professionals. This growth is bolstered by an average annual increase rate of 9.8%, rising from USD 40.4 billion in FY19 to USD 64.6 billion in FY24. Puri expressed hope that the India Energy Week would be a platform for collaborative progress and solution development globally.

Earlier discussions included a meeting with Pramod Sawant, Chief Minister of Goa, and H.E. Sultan Al Jaber, Minister of Industry and Advanced Technology, UAE.