This study reports an investigation into both isotropic and anisotropic permeability effects on gas production behavior during depressurization-induced natural gas hydrate dissociation at site NGHP-01-10D in the Krishna-Godavari basin. Numerical simulations were performed on a reservoir-scale model incorporating a single vertical well, examining different scenarios of permeability ratios (rrz). The investigation assessed gas and water production rates, cumulative production volumes, the gas-to-water ratio, and the spatial distribution of reservoir parameters throughout a production duration of 3 years. The findings indicate that permeability anisotropy has a substantial impact on hydrate dissociation and gas recovery. For rrz > 1, horizontal pressure propagation was promoted and gas production increased. For example, at t = 1100 days, the total gas production improved from 7.88 × 105 ST m3 for rrz = 1 to 55.9 × 105 ST m3 for rrz = 10. For rrz < 1, vertical pressure propagation resulted in higher water production with concomitantly lower rates of gas production rates. Spatial distribution analysis revealed that higher rrz values led to more extensive radial propagation of pressure drop, temperature decrease, gas saturation increase, and hydrate dissociation. The study concludes that higher horizontal permeability enhances depressurization effects, resulting in higher gas production rates and more favorable gas-to-water ratios.