India has notified the Petroleum Rules, 2025, marking a major overhaul of the regulatory framework governing the country’s upstream oil and gas sector. The new rules are aimed at simplifying procedures, improving ease of doing business, and attracting greater domestic and foreign investment into exploration and production activities. They replace several outdated provisions and seek to align India’s petroleum governance with global best practices.

Under the updated framework, the government has introduced simpler licensing mechanisms, clearer terms for exploration and production, and more flexibility for operators across different phases of hydrocarbon development. The rules also focus on reducing regulatory overlaps, enabling faster approvals, and providing greater operational certainty to investors. Officials have indicated that the reforms are intended to unlock India’s largely underexplored sedimentary basins and accelerate the country’s energy security objectives.

Reacting to the announcement, Anil Agarwal, Chairman of the Vedanta Group, described the move as a significant milestone for the sector. In a post on social media, he said, “This is a truly historic development. The world has long recognised India’s vast untapped hydrocarbon potential, and these new rules finally create the environment needed to unlock it. He further added, “India produces some of the most affordable oil and gas globally. These reforms will directly benefit consumers—especially the poorest—by enabling greater domestic production and reducing dependence on imports.” His remarks underline industry expectations that the revised rules could lead to increased exploration activity and higher capital inflows.

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The Petroleum Rules, 2025, also place emphasis on transparent governance, predictable fiscal terms, and long-term policy stability, which have been key demands of investors in the upstream energy space. By modernising regulatory processes and offering a more investor-friendly regime, the government aims to position India as a competitive destination for hydrocarbon exploration while balancing economic growth with responsible resource management.

Overall, the new rules are expected to play a crucial role in strengthening India’s oil and gas sector, encouraging private participation, and supporting the country’s broader goal of reducing import dependence through enhanced domestic production.

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