Page 34 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

kilometres of previously restricted offshore areas have significantly expanded exploration opportunities.
These reforms, complemented by investments in geoscientific surveys and the National Data Repository,
are expected to improve exploration success rates and attract greater investment into frontier basins.

To support these technically demanding operations, ONGC has established its dedicated Deepwater
Exploration Mission Centre (DeepX) in Mumbai. The centre integrates advanced seismic interpretation,
geoscientific analysis, digital technologies, specialised technical expertise and global collaborations to
improve the evaluation of complex offshore reservoirs. By consolidating exploration data under the
company's "One Company, One Data" framework, DeepX is expected to enhance operational efficiency
and strengthen India's technological capabilities in deepwater exploration.

The significance of the initiative extends beyond a single exploration well. Discoveries in deepwater basins
typically require substantial investment and advanced drilling technologies, but they also have the
potential to create large, long-life hydrocarbon assets capable of sustaining production for decades. As
India continues to import a significant share of its crude oil and natural gas requirements, successful
development of deepwater resources could improve energy self-reliance, strengthen the country's
balance of payments and reduce its exposure to global supply disruptions and oil price volatility. While
commercial production will depend on the outcome of exploration and appraisal activities, the
commencement of drilling in the Mahanadi Offshore Basin marks an important step towards unlocking
India's next major hydrocarbon frontier and advancing the country's long-term energy security objectives.

8. India's US$1 Trillion export ambition: a milestone within reach

India is steadily progressing towards its ambitious target of achieving US$1 trillion in exports of goods and
services, reflecting the country's growing integration with global markets and the increasing
competitiveness of its export sector. Total exports reached US$0.87 trillion in FY 2025–26, accounting
for 22.2 per cent of GDP. To achieve the US$1 trillion milestone during FY 2026–27, exports would need
to grow by approximately 15.3 per cent, a target that appears attainable given the strong momentum
witnessed during the first quarter of the fiscal year.

India's export performance has evolved considerably over the past two decades. While exports of goods
and services peaked at 26.1 per cent of GDP in FY 2013–14, they have subsequently remained in the range
of 19.3–22.4 per cent, reflecting the impact of a more fragmented global trading environment
characterized by geopolitical tensions, supply-chain disruptions and rising tariff and non-tariff barriers.
Despite these challenges, the country's export base has continued to expand, demonstrating resilience
amid changing global trade dynamics.

A notable structural transformation has been the rapid expansion of services exports, which are
increasingly complementing merchandise trade. The share of merchandise exports in total exports has
declined from 73.6 per cent in FY 2000–01 to 51.4 per cent in FY 2025–26, while the contribution of
services exports has increased to 48.6 per cent. High-value services, particularly telecommunications,
computer and information services, along with other business services such as research and
development, professional consulting and technical services, have emerged as major drivers of export

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