India is the second largest oil refiner in Asia as of September 2018. The oil and gas sector is among the eight core industries in India and is an important section of the economy. The growth of Indian Economy is based on energy demand and hence the oil industry hold greater significance.
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.
Oil imports rose sharply to US$ 87.37 billion in 2018 from US$ 70.72 billion in 2017. India retained its spot as the third largest consumer of oil in the world in the current fiscal.
India was the fourth-largest Liquefied Natural Gas (LNG) importer in 2018 after Japan, South Korea and China.
Gas pipeline infrastructure in the country stood at 16,226 km at the beginning of February 2019.
According to data released by the Department of Industrial Policy and Promotion (DIPP), the petroleum and natural gas sector attracted FDI worth US$ 7.00 billion between April 2000 and December 2018.
Consequently, India's energy demand as a percentage of global energy demand is expected to rise to 11 per cent in 2040 from 5.58 per cent in 2017. Crude oil consumption is expected to grow at a CAGR of 3.60 per cent to 500 million tonnes by 2040 from 221.76 million tonnes in 2017. Natural Gas consumption is forecasted to increase at a CAGR of 4.31 per cent to 143.08 million tonnes by 2040 from 54.20 million tonnes in 2017.