In a significant move to revitalize India's upstream oil and gas sector, the government has announced cuts in royalty rates for crude oil and natural gas. The revised rates are set at 10% for onshore crude oil, down from 16.66%, and 8% for offshore crude oil, reduced from 9.09%. For natural gas, the rate drops from 10% to 8%. This initiative aims to simplify financial calculations and reduce the burden on energy companies, thereby attracting more investment and boosting production. The changes come alongside amendments to the Oilfields Regulation and Development Act, which also exempt projects in difficult terrains from royalties for the first seven years. Despite the positive outlook, experts express concerns over the quality of prospectivity data and competition from more attractive global regions, which could hinder India's appeal to major oil companies. The government hopes these reforms will enhance project viability and reduce reliance on energy imports, as domestic crude oil production has been on a decline, dropping from 30.5 million tonnes in FY2020-21 to 28 million tonnes in FY2025-26. The total royalty collected by state and central governments has also decreased significantly, indicating the need for a strategic shift in policy to attract investment in the sector.