India’s Economic Growth Anchored in Energy and Shipping Sectors: Hardeep Singh Puri
New Delhi, October 30: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Wednesday highlighted that India’s rapid economic rise is deeply tied to the growth of its energy and shipping sectors, which together form two of the most critical pillars of the nation’s development and global trade.
Speaking at the India Maritime Week 2025 in New Delhi, the minister underscored that India’s expanding economy, currently valued at $4.3 trillion, draws nearly half of its strength from the external sector — including exports, imports, and remittances. This, he said, demonstrates how central maritime trade and energy logistics are to sustaining the nation’s economic trajectory.
India’s External Sector Driving Economic Expansion
“Nearly half of India’s GDP is now connected to the external sector,” Puri said, emphasizing the importance of trade and shipping as the arteries of the Indian economy. “Trade — and therefore shipping — remains indispensable to our growth story.”
He noted that India’s expanding trade footprint has reinforced the strategic importance of maritime infrastructure, ship ownership, and energy transportation. The government, he said, is taking proactive measures to make India’s ports, fleets, and logistics networks more efficient and self-reliant.
India’s Growing Energy Appetite
Focusing on the energy front, the minister said India’s energy consumption has seen consistent growth in recent years. “India currently consumes about 5.6 million barrels of crude oil per day, up from 5 million barrels four and a half years ago. At this pace, the figure will soon reach 6 million barrels per day,” Puri observed.
Citing projections from the International Energy Agency (IEA), he said India is expected to account for 30 per cent of the global increase in energy demand over the next two decades — a significant rise from the earlier projection of 25 per cent.
“This growing demand will naturally expand India’s need for ships to transport oil, gas, and other energy products across international waters,” he added.
Energy Trade and the Shipping Connection
India’s oil and gas sector forms the backbone of the country’s maritime trade. During FY 2024–25, the country imported approximately 300 million metric tonnes (MMT) of crude oil and petroleum products, while exporting around 65 MMT.
“The oil and gas sector alone accounts for nearly 28 per cent of India’s total trade by volume, making it the single largest commodity handled by Indian ports,” Puri said.
With India meeting 88 per cent of its crude oil and 51 per cent of its gas requirements through imports, the shipping industry plays an indispensable role in ensuring the nation’s energy security.
The Cost of Dependence and the Case for Indigenous Fleet
Highlighting the economic impact of heavy import reliance, Puri explained that freight costs form a significant portion of India’s import expenditure.
“Oil marketing companies pay around $5 per barrel to transport crude from the United States and approximately $1.2 per barrel from the Middle East,” he revealed. “In the last five years, India’s public sector oil companies — Indian Oil, BPCL, and HPCL — have collectively spent nearly $8 billion on chartering ships.”
According to Puri, this amount could have financed the construction of an entirely new fleet of Indian-owned tankers, reducing dependence on foreign vessels and keeping freight earnings within the domestic economy.
Building India’s Shipping Strength
Currently, only 20 per cent of India’s total trade cargo is carried on India-flagged or India-owned vessels. The minister called this both a challenge and an opportunity for the country to build a stronger maritime presence globally.
To address this, the government is advancing multiple initiatives, including:
- Aggregating PSU cargo demand to offer long-term charters to Indian carriers.
- Implementing the Ship Owning and Leasing Model (SOLM) to boost domestic ship ownership.
- Establishing a Maritime Development Fund (MDF) to facilitate affordable vessel financing.
- Launching Shipbuilding Financial Assistance Policy 2.0, with greater support for LNG, ethane, and product tankers.
“These initiatives are designed to make India not just a maritime hub, but a maritime power,” Puri said.
Maritime Infrastructure Growth Under PM Modi
The minister also highlighted the remarkable transformation of India’s maritime sector under Prime Minister Narendra Modi’s leadership over the past 11 years.
“Port capacity has increased from 872 million metric tonnes per annum in 2014 to 1,681 million metric tonnes today, while cargo volumes have grown from 581 million tonnes to around 855 million tonnes,” Puri informed.
He said the government’s emphasis on modernizing ports, enhancing connectivity, and promoting green shipping has created a strong foundation for India’s maritime growth, while also generating employment and boosting trade efficiency.
Energy, Oceans, and the Vision of Viksit Bharat
Puri emphasized that India views its oceans not as boundaries but as gateways to growth, trade, and global cooperation. “Our oceans are pathways to prosperity. We are modernizing ports, expanding our fleet, promoting sustainable shipping, and creating jobs for India’s youth,” he said.
He reaffirmed that the Modi government’s goal is to develop the maritime sector as a core driver of a self-reliant and developed Bharat (Viksit Bharat). “India is ready to collaborate with global partners to make maritime trade a cornerstone of our growth story,” he added.
Final Thoughts from TheTrendingPeople.com
Minister Hardeep Singh Puri’s address at India Maritime Week 2025 underscored a crucial truth — that India’s economic might is inseparable from its energy and maritime strength. As the nation’s demand for oil, gas, and global trade continues to grow, building indigenous shipping capacity and strengthening port infrastructure will be key to achieving energy independence and economic resilience.
Under the Modi government’s leadership, India is steering towards a future where its ships, ports, and seas will not only power national growth but also define its place in the global economy.