Question

What is the future of the petroleum industry in India?

Answer 1

Hint: India is expected to be one of the most important contributors to global non-OECD petroleum consumption growth. Crude Oil imports increased dramatically from US $70.72$ billion in $2016 - 17$ to US $101.4$ billion in $2019 - 20$. India's oil refining capacity was $259.3$ million metric tonnes (MMT) on December $1$, 2020, making it Asia's second-largest refiner.

Complete answer:
The oil sector is one of India's eight core industries, and it has a major impact on how other critical sectors of the economy make decisions. Since India's economic growth is closely linked to its energy demand, the demand for oil and gas is expected to increase, making the sector attractive for investment.

To meet the rising demand, the government has implemented a number of policies. It has enabled $100$ percent FDI in many sectors, including natural gas, petroleum products, and refineries, to name a few. As evidenced by the presence of Reliance Industries Ltd (RIL) and Cairn India, it now attracts both domestic and foreign investment.

On the back of continued robust economic growth, India's energy demand is expected to rise faster than that of all major economies. From $753.7$ Mtoe in $2017$, India's energy demand is projected to double to $1,516$ Mtoe by $2035$. Furthermore, by $2035$, the country's share of global primary energy consumption is expected to double.

Note: From $5.05$ million barrels per day in $2020$, India's oil demand is expected to grow at the fastest rate in the world, reaching 10 million barrels per day by $2030$. By $2029 - 30$, India's diesel demand is projected to double to $163$ million tonnes (MT).