In India, the oil and gas sector is the six core industries and plays a vital role in GDP and also deciding the other sections of the economy.
The New Exploration Licensing Policy (NELP) was envisaged in 1997–98 to fill the increasing gap between India’s gas demand and supply. India’s economic growth is closely related to energy demand; therefore the need for oil and gas is predicted to grow more, thus making the sector quite encouraging for investment.
Several Policy was adopted by the Government of India has satisfied the increasing demand. The government has permitted 100 percent Foreign Direct Investment (FDI), comprising refineries, petroleum products, and natural gas among others. Today, it attracts both foreign and domestic investment, as shown by the presence of Cairn India and Reliance Industries Ltd (RIL).
India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. Due to the predictable strong growth in demand, India’s dependency on oil imports is expected to increase further.
Rapid economic growth is resulting in greater outputs, which in turn is boosting the demand for oil for transportation and production. Demand for the automobile is expected to increase with rising income levels, leading to increased demand for oil and gas.