India to Become Third-Largest Global Economy by 2029, Hardeep Singh Puri Highlights Role of Public Sector Enterprises

The Minister lauded the remarkable progress made by PSEs over the last decade and their vital contributions to India’s economic stability.

Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, addressed the 12th Public Sector Enterprises (PSE) Summit today, organised by the Confederation of Indian Industry (CII), outlining India's ambitious path toward becoming the third-largest economy in the world within the next five years and a developed nation by 2047. In his speech, Shri Puri reflected on India’s transformation from a vulnerable economy in 2014 to the world’s fifth-largest economy today, with Public Sector Enterprises (PSEs) playing a pivotal role in driving the nation's remarkable economic growth and sustainable energy future.

India's Journey from Fragility to Economic Powerhouse

The Minister lauded the remarkable progress made by PSEs over the last decade and their vital contributions to India’s economic stability. "The next few years will be crucial as we lay the groundwork for India’s next leap forward," Shri Puri remarked. He attributed India’s economic resilience to a combination of strategic reforms and the unwavering dedication of its PSEs.

Strong Growth of Public Sector Enterprises

Shri Puri shared impressive figures that underscore the resilience and performance of Public Sector Enterprises. From FY14 to FY23, the net worth of Central Public Sector Enterprises (CPSEs) surged by 82%, reaching Rs 17.33 trillion from Rs 9.5 trillion. Contributions from CPSEs to the national exchequer, including excise duties, taxes, and dividends, more than doubled from Rs 2.20 lakh crore in FY14 to Rs 4.58 lakh crore in FY23.

The Minister also highlighted the 87% growth in net profits of profit-making CPSEs, from Rs 1.29 lakh crore in FY14 to Rs 2.41 lakh crore in FY23. Additionally, the market capitalization of listed PSEs has increased by 225%, significantly outpacing the PSE index and BSE Sensex over the past decade.

Vision for India's Energy Sector: Sustainability at the Forefront

Shri Puri outlined a forward-looking vision for India's energy sector, focusing on three key principles: availability, affordability, and sustainability. He emphasized that sustainability would remain the cornerstone of India’s energy strategy, aligning with the broader vision of transforming PSEs into engines of sustainable growth.

The Minister pointed to the country’s bioethanol blending progress as a prime example of this transformation. “From 1.53% in 2014, ethanol blending has surged to 15% in 2024, with a target of 20% blending now set for 2025, five years ahead of schedule,” said Shri Puri. He also noted that discussions had already begun to outline a roadmap for the post-2025 phase, aiming to ensure continued growth in the bioethanol sector and its role in achieving India’s renewable energy goals.

Balancing Fossil Fuels with Clean Energy Transition

Despite India’s push for cleaner energy, Shri Puri acknowledged that fossil fuels would continue to be a part of the energy mix for the foreseeable future. The government’s approach, he explained, would focus on balancing the transition to cleaner sources with ensuring energy security, stability, and affordability for all citizens.

Reform in Exploration and Production (E&P)

The Minister also highlighted the major reforms in India’s Exploration and Production (E&P) sector. These reforms have opened up new areas for oil and gas exploration. “We have reduced No-Go areas in Exclusive Economic Zones (EEZ) by 99%, offering the largest-ever bid round of 1,36,596 square kilometers under the Open Acreage Licensing Policy (OALP). This includes 13 blocks covering 51,405 square kilometers, previously designated as ‘No-Go’ zones,” he explained.

India’s Green Hydrogen Potential

Shri Puri also discussed India’s growing potential in green hydrogen production, noting the country’s favourable demand, production capacity, and consumption patterns. He expressed confidence that India could become a global leader in green hydrogen and underscored the role of Artificial Intelligence (AI) in optimizing India’s energy systems, driving efficiency, and supporting sustainability.

Encouraging Collaboration and Knowledge Exchange

The Minister commended the CII for organizing summits like the PSE Summit, which provides a platform for collaboration and knowledge exchange. He stressed the importance of collective efforts from all stakeholders, saying that these efforts would help strengthen the nation’s PSEs, which are key pillars of India’s vision for sustainable growth, integrity, and progress.

With the country’s increasing focus on innovation, sustainability, and green energy, India’s Public Sector Enterprises are poised to continue driving the nation toward economic prosperity and a greener future, positioning the country as a global economic leader by the middle of this century. 4o mini