India has approved a US$8.8 billion financial support package for offshore oil and gas exploration, marking a significant escalation in the country's efforts to reduce its dependence on energy imports.
The initiative, announced on Friday, targets the development of domestic reserves to bolster energy security amid persistent global supply volatility.
The move signals a strategic pivot toward self-sufficiency for the world's third-largest energy consumer.
By injecting substantial capital into offshore exploration, New Delhi aims to unlock new production capacity that can offset the need for costly foreign purchases.
This long-term supply-side intervention is expected to gradually ease pressure on India's trade balance, which has historically been strained by high energy import bills.
The announcement follows recent domestic moves to strengthen strategic reserves, including board approval by Oil and Natural Gas Corporation (ONGC) to expand storage capacity by 1.75 million tonnes in Mangaluru.