India’s Oil & Gas Boom: A Golden Time for Equipment Manufacturers

As the world’s third-largest consumer of oil and gas, India is scaling its domestic production, expanding import capacity, and modernising refining and distribution networks.

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This shift is creating long-term opportunities for equipment manufacturers, engineering firms and industrial suppliers that can serve an increasingly technology-driven and efficiency-focused energy ecosystem.

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India’s Expanding Energy Landscape

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India’s demand for oil and gas continues to rise in tandem with economic growth, urbanisation and industrialisation. The country’s consumption is projected to grow significantly, driving major investments across the energy value chain.

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Recent developments underscore this momentum:

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• GAIL (India)Ltd is investing to expand the Dabhol LNG Terminal, enabling year-round operations.

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• TotalEnergies SE has signed a major 10-year LNG deal with Gujarat State Petroleum CorporationLtd, strengthening India’s LNG supply network.

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• The Government’s National Green Hydrogen Mission (outlay ~ ₹19,744 crore) is catalysing investments across gas processing and equipment manufacturing.

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India’s Strategic Position in This Landscape

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India is emerging as a key pillar of global energy demand.The International Energy Agency (IEA) forecasts that India will be the largest contributor to global oil demand growth through 2030, adding nearly 1.2 million barrels per day.

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To meet this surge, India is expanding capacity across every link of the energy value chain. Its refining capacity now stands at 256.8million metric tonnes per annum (MMTPA), making it Asia’s second-largest refining hub. The country also operates eight LNG terminals with a combined regasification capacity of 52.7 MMTPA, ensuring energy supply diversification and import flexibility.

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The India Oil & Gas Projects Market is set to grow fromUSD 29.3 billion in 2024 to USD 85 billion by 2035, according to Market Research Future.

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For equipment manufacturers supplying pumps, subsea systems, compressors, valves, or process equipment, this growth signals a decade of unmatched opportunity.

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The Industry Today: Scale and Signals

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India’s oil and gas sector is not only expanding supply but also riding a powerful wave of demand across industries. As the world’s third-largest energy consumer after China and the United States, India’s oil demand reached 5.57 million barrels per day in 2024, up 4.2 per cent year-on-year.

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This momentum is driven by the country’s fast-growing economy, urbanization, and the resurgence of industrial production.

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The chemical and petrochemical industries, valued at overUSD 220 billion, are among the biggest downstream drivers of oil and gas consumption. Expanding refining and petrochemical complexes, such as IOCL’s Paradip and HPCL’s Barmer projects, are integrating fuel and chemical production to meet rising domestic and export demand.

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At the same time, mobility and logistics are undergoing rapid transformation. Vehicle ownership is expected to double by 2035, andIndia’s aviation fuel consumption is projected to grow nearly 50 per cent by2030.

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Industrial expansion, infrastructure buildout, and a growing manufacturing base are adding new layers of energy intensity. These trends makeIndia one of the most strategic long-term markets for oil, gas, and the equipment that powers them.

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Trends Shaping Growth

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1. Downstream Expansion and Modernisation

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India’s refining capacity has grown to one of the largest globally. Major players are modernising refineries for cleaner fuels and export-grade products. This drives demand for high-precision equipment — pumps, compressors, automation systems, control valves, and emission-management technologies.

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2. Strengthening Midstream Infrastructure

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With LNG imports expected to rise, investment in storage, regasification and transportation is increasing. The Dabhol LNG terminal example further supports this trend.

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3. Digital and Sustainability Transitions

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Energy companies are investing in automation, predictive maintenance and digital twins to improve asset reliability and reduce emissions. This opens new markets for firms providing IoT-enabled monitoring, analytics and clean-energy-compatible equipment.

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4. “Make-in-India” and Localisation Push

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Government incentives and industry partnerships are encouraging localisation of manufacturing for energy equipment. Global OEMs are increasingly looking at India as both a domestic and export hub.

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Opportunities for Equipment Manufacturers

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The transformation of India’s oil & gas sector is creating layered opportunities:

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•  Upstream:

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Exploration, drilling, and well-service equipment are seeing renewed demand as India looks to boost domestic production.

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This includes bits, tubulars, downhole tools, and stimulation systems for new exploration wells, as well as manifolds, umbilicals, subsea control systems, and floating platforms for deepwater fields. There is also a growing need for maintenance and servicing solutions as existing assets age.

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•  Midstream:

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As India expands its pipeline transport and LNG infrastructure, the focus is on reliability, safety, and capacity expansion.

Opportunities lie in compressor stations, valves, metering, and safety instrumentation for the growing national gas grid, alongside cryogenic and LNG handling systems that ensure efficient, low-loss operations.

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•  Downstream:‍

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India’s refining and petrochemical sectors are its strongest suit, continuing to attract both domestic and foreign investment.

Equipment demand is growing across refinery automation, process control, and emissions management, along with pressure vessels, exchangers, dehydration and separation systems. Increasingly, refineries are embedding sensors, data analytics, and cybersecurity into smart infrastructure for operational efficiency. There is also sustained demand for upgrades, coatings, spares, and maintenance services to modernise existing assets.

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For global and domestic suppliers, success will depend on:

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✔️ Building local partnerships and service networks.

✔️ Adapting products to Indian operating conditions and standards.

✔️ Integrating digital and sustainability features into industrial systems.

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MindStep’s Edge: Turning Strategy Into Execution

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Winning in India’s oil & gas market requires more than strategy. It demands execution built for India’s regulatory, cultural, and operational realities. MindStep helps equipment manufacturers move from intent to impact.

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With MindStep, you get:

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• Market & Opportunity Assessment – A deep dive into your current capabilities and India’s sector potential. Understand where your technology fits and what capabilities to strengthen.

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• Build a Go-to-Market Strategy – Tailored plans aligned with your global vision and India’s specific policy and customer context.

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• Execution Support – On-ground guidance, leadership coaching, and regular reviews to ensure strategy translates into measurable results.

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• Localisation – Assistance in building supply chains, hiring skilled talent, and adapting operations to India’s unique market and regulatory environment.

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MindStep works beside you from insight to impact, ensuring your India entry and scaling journey is structured, scalable and sustainable.

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