India-EU FTA signed, energy sector offers $500 bn opportunity: PM Modi

Prime minister says pact covers a quarter of global GDP as India builds export-oriented energy ecosystem

Prime Minister (PM) Narendra Modi on Tuesday made two significant announcements in a virtual address at the India Energy Week (IEW) event in Goa, saying India and the European Union (EU) have signed their historic and much-awaited trade deal and that the country's energy sector presents a $500 billion investment opportunity.

 

Commenting on the significance of the signing of the India-EU trade deal, Modi said the pact represents close to 25 per cent of the global gross domestic product (GDP) and one-third of the global trade. "The deal supports both trade and the global supply chain," he said.

 

Addressing the audience through videoconferencing in the inaugural session of the event, Modi said India is on path to develop a robust energy ecosystem, which will not just meet future domestic demand but also promote exports. He said the government has introduced significant energy policy changes recently to support growth and investment.

 

 

India aims to raise investments in the oil and gas sector to $100 billion by the end of the decade, with a target of expanding the scope of exploration to 1 million square kilometres (sq km), Modi said.

 

On the refining front, the PM said India would soon become the largest country in terms of refining capacity, which is bound to rise beyond 300 million tonnes per annum (mtpa) from the current 260 mtpa.

 

Speaking at the same event, UAE Minister of Industry and Advanced Technology Sultan Al Jaber, who is also the managing director (MD) and group chief executive officer (CEO) of ADNOC, said his country would remain a reliable source of energy to India. “As India’s refining demand grows, ADNOC will remain a trusted, dependable crude supplier. India is ADNOC’s number-one LNG (liquefied natural gas) market, ADNOC is India’s largest LPG (liquefied petroleum gas) supplier, and it continues to supply feedstocks and chemicals,” he said.

 

The biggest risk to the energy sector currently is not over-supply but underinvestment, said the UAE minister. “Global air-conditioner numbers are projected to more than triple to 5.6 billion by 2050, equivalent to ten AC units sold every second for the next 30 years. Demand at this scale and pace requires investment in all forms of energy,” said Jaber. Electricity demand would be driven not only by artificial intelligence (AI) and data centres but increasingly by cooling, he added.

 

India’s Oil Minister Hardeep Puri also said at the event that the government is enabling the sector’s growth by building capacity, improving market conditions, and supporting the full energy mix. “The Oilfields (Regulation and Development) Amendment Act, 2025, along with the Petroleum and Natural Gas Rules, 2025, has significantly strengthened India’s upstream ecosystem. These reforms introduce single petroleum leases, ensure time-bound approvals, and provide long-term lease stability,” he said.

 

Puri also highlighted that shipbuilding has emerged as another growth avenue in India. The government’s $8 billion package to boost shipbuilding and maritime sector creates a strong foundation for capacity expansion, industrial scale-up, and new investment partnerships across the maritime value chain, he said. India presents an investment opportunity of around $5 billion, with an immediate requirement for around 60 vessels in the oil and gas trade. “In India’s trade basket, the oil and gas sector accounts for 28 per cent by volume, making it the largest commodity group handled at our ports,” he said.

 

At the IEW this year, India is hosting 500 global energy industry leaders over four days from January 27-30. The event will see PM Modi engaging with 13 global CEOs, five private-sector leaders from India, and nine heads of Indian public sector undertakings (PSUs). Chief Minister of Goa Pramod Sawant was also present at the event on Tuesday.