AI as a strategic catalyst
Enterprise-wide AI integration combined with deep process expertise enables step-change improvements in operational performance
Sujoy Choudhury The Chatterjee Group (TCG)
I ndia has emerged as one of the fastest- growing major economies, consistently outpacing both advanced and emerging peers. Despite ongoing geopolitical challenges and energy market volatility in 2025, the country continues to demonstrate robust growth, maintaining its position as a global growth leader. According to the World Economic Outlook (April 2025), India’s GDP is projected to grow by 6.2% in 2025, 6.3% in 2026, and 6.5% in 2030, well ahead of other major economies, such as China, the US, Japan, and the UK. In 2025, India made global headlines by overtaking Japan to become the fourth-largest economy in the world. With a GDP of $4.187 trillion and a per capita GDP of $2,934, India combines strong economic growth with a large and diverse population. The oil and gas sector is a cornerstone of India’s economic engine, contributing around 15% to the country’s GDP and meeting more than 30% of its total energy demand (see Figure 1 ). Notable government initiatives Sustaining and strengthening India’s oil and gas
infrastructure is vital for national growth, energy independence, and maintaining geopolitical stability amid evolving global energy dynamics. In this light, the government initiatives (see Figure 2 ) are critical as the industry faces mounting pressures and challenges (outlined in the next section). Industry status quo: limitations of traditional control systems The challenges outlined above also help set the context for understanding the oil and gas sector deeply, which has traditionally been very conservative in its approach, predominantly emphasising reliability and safety in its operations. Historically, the sector has relied heavily on established, classical advanced process controls (APCs) to manage plant processes. These systems, while foundational, often lack the dynamic adaptability needed to fully optimise complex industrial operations. The industry’s cautious stance has limited the adoption of AI, focusing mainly on proven methods to ensure steady and safe operations rather than embracing innovative AI-driven
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2nd ranked in ethanol - blended petrol 4th largest LNG importer
3rd largest oil consumer 3rd largest oil importer
4th largest re ning capacity 7th largest exporter of re ned petroleum products India currently operates 19 Public Sector Undertaking (PSU) re neries, 3 Private Sector re neries and 1 Joint Venture re nery . The country’s refining capacity increased from 215.1 million m etric t ons per annum (MMTPA) in April 2014 to 256.8 MMTPA in April 2024 .
The country’s total oil consumption is approximately 5.7 million barrels per day , with global demand exceeding 100 million barrels per day. India depends heavily on imports, sourcing 90% of its crude oil - over 243 million tonnes annually - at a cost surpassing $143 billion , highlighting strategic vulnerabilities and the sector’s economic weight.
Natural gas demand is expected to reach nearly 103 billion cubic metres (bcm) annually by 2030 from approximately 64 bcm in 2024. India aims to double its natural gas share in the energy mix from 6 - 7% to 15% by 2030 .
Figure 1 India’s energy position – a snapshot in numbers.
Source: PIB, PNGRB studies and Energy Statistics India 2024
Refining India
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