India is surging ahead in its growth and its economy growing at the rate of 9.2 percent per annum, second only to china. The demand for oil will double its self in next 20 years. To meet out the mammoth demand, India has to but depend upon overseas market to quench its thirst; this will cost our exchequer thousands of crores in a year. It will dampen our economic growth. To negate this, India has to prepare strategy at various fronts. First among them is to expand our market for oil and gas through buying of oilfields .The recent buying by the overseas wing of ONGC in Nigeria ,Russia , Sudan ,Syria are worth the salt. Buying stakes in Sakhalin I and Sakhalin II oilfields in Russia is one of best opportunities and best buy. It will assure a regular flow of oil for our country. India has to go for joint ventures with other oil companies to improve our chance of getting oil contracts and meet out the huge cost involved. Joint ventures with mittal group and with petrobas of brazil and Chinese National Petroleum Company has proved advantageous. Iran has one of the biggest gas reserves in the world and to exploit this reserve it needs huge market which can been given by India ;this is the right time; and the proposed gas pipeline between Iran, Pakistan and India is a huge step forward to fulfill India’s gas demand .India must clinch this deal .This will provide huge benefit to all the countries involved .It is an win win situation for India .Government should also concentrate on other alternatives such as bio diesel which offers huge potential .Use of bio diesel for fuelling the vehicle and for other industrial purpose will go in a long way to meet our needs. The government has taken steps to propagate and promote it, but it is inadequate and unconvincing. The remuneration for growing bio diesel crops like jatropa is small and the processing of the fuel involves huge cost .Hence government should provide incentive and subsidy for growing and processing. There is no nodal agency for procurement of the raw material for bio diesel .Non conventional source of energy is the best supplement for energy demand. Alternate form of energy like wind energy, solar energy, tidal energy and fission energy offers promising note. Initial cost involved is large but long term benefit is many, like clean energy, recycling of waste products, inexhaustible source energy. India with a population of 1.5 billion will put enormous demand on our economy and meeting this demand is a challenge to us. It should allow and have allowed 100 percent foreign direct investment in oil exploration and deep sea drilling. This is welcome step since it will cost less for Indian government and most recent and advanced technology can be used to avoid wasteful drilling and exploration. World economy is powered by oil and if India has to stay in the race it has to act fast and furious .There is no room for excuse.