India Diversifies Energy Security with Offshore Exploration Scheme

India is taking steps to reduce its dependence on imported hydrocarbons by investing in offshore energy exploration. The National Offshore Exploration Scheme, or Samudra Manthan, was approved by the Union Cabinet in July 2026 with a commitment of Rs 84,084 crore through Financial Year 2030-31.

The scheme aims to add over 600 million tonnes of oil equivalent to India's reserve base and is part of the government's strategy to build sustainable energy goals. With over 88% of crude oil imports coming from abroad and half of natural gas supplies also imported, India is vulnerable to global supply chain disruptions.

The recent closure of the Strait of Hormuz highlighted this vulnerability, with oil traffic collapsing by almost 97%. The government's policy shift from demand-side diversification to supply-side exploration is seen as a long-term response to these disruptions. By investing in offshore exploration, India can reduce its reliance on external energy shocks and create a more resilient energy base.