India’s Ambitious Plan: Building a Homegrown Oil Tanker Fleet to Save $8 Billion in Charter Costs, Insights from Hardeep Puri

India is gearing up for a significant change in how it handles energy shipping. The country plans to build its own fleet of oil tankers to save the hefty shipping costs currently spent on foreign vessels. Union Petroleum and Natural Gas Minister Hardeep Singh Puri made this announcement at the India Maritime Week 2025 in Mumbai.

Right now, India’s three main oil companies—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—spend about $8 billion every five years leasing foreign ships. That money could easily fund an entirely new fleet of tankers. Despite the oil and gas sector representing 28% of India’s total trade, only 20% of this cargo is transported using Indian-owned vessels. Puri sees this imbalance as a chance to strengthen the country’s maritime capabilities.

India heavily relies on energy imports, sourcing nearly 88% of its crude oil and 51% of its natural gas from abroad. In just one year, the crude import bill reached more than $150 billion. The cost of shipping plays a significant role in these expenses, with Indian companies paying about $5 per barrel for crude from the U.S. and $1.20 per barrel from the Middle East.

To address these issues, the government is moving forward with several initiatives. These include consolidating cargo demands among public sector enterprises to secure long-term contracts with Indian carriers, and enhancing domestic ownership through the Ship Owning and Leasing Entity (SOLE) model. There’s also a Maritime Development Fund aimed at making vessel financing more accessible.

Looking ahead, demand for energy is rising rapidly. The Oil and Natural Gas Corporation (ONGC) predicts a need for nearly 100 offshore supply vessels by 2034. Last fiscal year, India imported around 300 million metric tonnes of crude and petroleum products while exporting about 65 million metric tonnes.

Minister Puri highlighted how India’s maritime sector has evolved under Prime Minister Narendra Modi’s leadership over the past decade. Port capacity nearly doubled, and cargo volumes increased significantly. Turnaround time at ports has also improved, going from 96 hours down to about 49.5 hours.

Indian shipyards are ready to back this growth. Companies like Cochin Shipyard and L&T are working closely with global partners to bring cutting-edge technology to India. Puri emphasized that with these developments, India isn’t just “Making in India”—it’s preparing to “Sail for the World.”

The government aims to attract significant investment in the maritime sector, projecting that it could generate 15 million jobs by 2047. India also aims to play a key role in new global trade routes, such as the India-Middle East-Europe Economic Corridor.

In terms of public sentiment, social media users have begun to express optimism about India’s maritime future, sharing stories of local shipbuilding successes and highlighting the potential for job creation. This moment reflects a broader shift in how India approaches global trade, leveraging its ocean resources for economic growth and sustainability.

As Puri put it, “Our oceans are not barriers, but bridges to a better future.” This strategic vision could redefine India’s role in global maritime trade for years to come.

For more insights on maritime developments, check out resources from the Ministry of Ports, Shipping and Waterways here.

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