India Boosts Oil Refining Capacity to 6.4 Million Barrels per Day
India is expanding its oil refining capacity from 5.4 million to 6.4 million barrels per day, aiming to solidify its position as a global energy hub by attracting investment from Gulf monarchies.
Oil Minister Hardeep Singh Puri confirmed that Saudi Arabia and the UAE are interested in financing new projects, with each modern refinery requiring an investment of 780 billion to 800 billion rupees (approximately $8.13 billion to $8.34 billion).
Macroeconomist Artem Loginov notes that India's steady demand makes its refining sector an attractive asset for OPEC+ nations seeking guaranteed markets for their crude oil.
India currently has a surplus of installed capacity, with 258.1 million tons per year exceeding domestic needs. The country is also becoming a critical supplier for Europe, providing 60% of all diesel shipments to Europe via the Bab-el-Mandeb strait in August 2026.