The oil and gas sector is among the eight core industries in India and plays a major role in influencing decision making for all the other important sections of the economy. India’s economic growth is closely related to energy demand; therefore the need for oil and gas is projected to grow more, thereby making the sector quite conducive for investment.
The Government of India has adopted several policies to fulfil the increasing demand. The government has allowed 100 per cent Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries, among others. Today, it attracts both domestic and foreign investment, as attested by the presence of Reliance Industries Ltd (RIL) and Cairn India.
India had 4.5 thousand million barrels of proven oil reserves at the end of 2018 and produced 39.5 million tonnes in 2018. As of Apr 01, 2019, India had a network of 10,419 km of crude pipeline having a capacity of 145.6 mmtpa.
Market Size 01
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally.
Government Initiatives 02
Some of the major initiatives taken by the Government of India to promote oil and gas sector are:
Road ahead 03
Energy demand of India is anticipated to grow faster than energy demand of all major economies, on the back of continuous robust economic growth.