In a landmark announcement that underscores shifting global energy dynamics, U.S. President Donald Trump revealed on March 10, 2026, that India's Reliance Industries will fund the construction of America's first new oil refinery in 50 years. The $300 billion facility, to be located at the port of Brownsville, TX, represents the largest investment of its kind in U.S. history and will be developed by America First Refining.
The project includes a 20-year agreement for Reliance to process and distribute American shale oil, solidifying the India-based conglomerate's footprint in the U.S. energy sector.
For investors, this collaboration should act as a significant tailwind for India exchange-traded funds (ETFs) with heavy weightings in Reliance as this conglomerate cements its role as a critical pillar of U.S. energy security.
Now, before mentioning those particular ETFs, let us try to understand what was the motivation behind this historic collaboration, how it will benefit Reliance, and by extension, India ETFs holding them.
What Led to the Investment?
The strategic rationale for Reliance's massive U.S. bet is deeply intertwined with current geopolitical turbulence.
Global oil supply chains have become increasingly precarious amid the ongoing geopolitical volatility, marked by escalating conflicts in the Middle East and Trump’s "Operation Epic Fury" targeting Iranian influence.
Crude prices, which have remained volatile in recent years, reached nearly $120 per barrel at the beginning of this week, exposing the vulnerability of nations reliant on Middle Eastern imports. This has also been impacting the United States, which produces a surplus of light shale oil but lacks adequate refining capacity to process it.
Against this backdrop, the new Texas refinery offers a win-win solution. It will strengthen domestic energy security by processing 100% American crude as well as reduce dependence on foreign refined products.
The venture stands to benefit from Reliance’s deep-seated operational knowledge. The company currently operates the Jamnagar Refinery in Gujarat, India, which is the world’s largest refining complex with a capacity of roughly 1.4 million barrels per day. With a Nelson Complexity Index (NCI) of 21.1, Reliance is a global leader in converting low-value feedstock into high-grade fuel, a technical edge that will be instrumental in making the new Texas facility "the cleanest refinery in the world."
How Does the Refinery Benefit Reliance and India ETFs?
For Reliance Industries, this project is transformative. It diversifies the company's asset base into the world's largest energy market, backed by a 20-year off-take agreement that ensures a stable revenue stream.
This project should also potentially diversify Reliance Industries’ earnings away from purely India-centric cycles and could unlock higher-margin export and trading opportunities over time. Reports also highlight a long-term offtake structure around fuels produced at Brownsville, which, if confirmed, would provide volume visibility and strengthen Reliance’s downstream integration.
The refinery will process 1.2 billion barrels of shale oil valued at $125 billion, yielding 50 billion gallons of refined products worth $175 billion. This vertical integration—from crude sourcing to refining and distribution—should enhance Reliance’s margin control and reduce exposure to volatile international fuel markets.
For India ETFs that count Reliance as a top holding, this deal acts as a powerful catalyst. As the refinery progresses, anticipated cash flows and strategic importance could drive re-rating of Reliance's stock, directly lifting the net asset values of these funds.
Thus, investors who hold India ETFs with concentrated exposure to Reliance stand to benefit significantly from this multi-decade growth avenue, yet staying protected from the idiosyncratic risk of single-stock investment.
India ETFs in Spotlight
Considering the aforementioned discussion, investors seeking exposure to Reliance’s expected valuation expansion may consider the following ETFs:
iShares India 50 ETF INDY
This fund, with total assets worth $606 million, provides exposure to 50 of the largest Indian stocks. Reliance Industries holds the second spot in this fund, with a 8.70% weightage.
INDY has risen 1.5% over the past year. The fund charges 65 basis points (bps) as fees.
Global X India Active ETF NDIA
This fund, with net assets worth $59.7 million, offers exposure to 30 companies with quality business models and management teams across India, focusing on domestic-driven growth over a 4-5 year investing horizon. Reliance Industries holds the first spot in this fund, with 8.46% weightage.
NDIA has risen 7% over the past year. The fund charges 76 bps as fees.
WisdomTree India Earnings Fund EPI
This fund, with total assets worth $2.53 billion, provides exposure to 558 profitable companies in India’s equity market. Reliance Industries holds the first spot in this fund, with 7.39% weightage.
EPI has gained 4.8% over the past year. The fund charges 84 bps as fees.
iShares MSCI India ETF INDA
This fund, with net assets worth $8.36 billion, offers exposure to 165 large- and mid-capitalization companies in India. Reliance Industries holds the first spot in this fund, with 6.60% weightage.
INDA has risen 2.4% over the past year. The fund charges 61 bps as fees.
Franklin FTSE India ETF FLIN
This fund, with total assets worth $2.98 billion, provides exposure to 275 large and mid-cap companies in India. Reliance Industries holds the first spot in this fund, with 6.22% weightage.
FLIN has risen 2.9% over the past year. The fund charges 19 bps as fees.
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WisdomTree India Earnings ETF (EPI): ETF Research Reports
iShares MSCI India ETF (INDA): ETF Research Reports
iShares India 50 ETF (INDY): ETF Research Reports
Franklin FTSE India ETF (FLIN): ETF Research Reports
Global X India Active ETF (NDIA): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).