Make In India

Oil & Gas Sector Overview

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India’s Oil & Gas sector, valued at ₹8.5 trillion in 2023-24, is a cornerstone of the country’s energy infrastructure. It encompasses upstream, midstream, and downstream activities, making it integral to India’s energy security and economic growth.

Why Invest in the Oil & Gas Sector

  • Growing Demand: India’s oil and gas demand is expected to grow by 4.6% CAGR by 2030.
  • Energy Security: India is the third-largest energy consumer globally, with rising demand for oil and gas.
  • Government Support: Policies like the National Oil and Gas Exploration Policy and the PLI Scheme for Oil & Gas infrastructure support growth.

Incentives & Schemes

  • National Oil and Gas Exploration Policy: Focuses on increasing domestic exploration and production.
  • PLI Scheme for Oil & Gas: ₹25,000 crore to boost oil and gas infrastructure and manufacturing.
  • GST on Petroleum Products:: Reduction in GST rates for exploration and distribution services.

Highlights

  • Oil Production: India produces 38 million tons of crude oil annually.
  • Natural Gas: India’s natural gas production reached 35 BCM in 2023.
  • Import Dependency: India imports 85% of its crude oil needs.

Oil & Gas Sector Data

Category Details
Market Size (2023-24) ₹8.5 trillion
Crude Oil Production 38 million tons (2023)
Natural Gas Production 35 BCM (2023)
PLI Scheme Allocation ₹25,000 crore
Import Dependency 85% of crude oil imports
FDI in Oil & Gas $15 billion since 2000
Refining Capacity 250 million tons per year
Oil Demand Projected to reach 5 million barrels/day by 2030
Natural Gas Demand Expected to reach 62 BCM by 2030
Employment 7 million+ people

Latest Figures and Progress

  • Production: India’s crude oil production was 38 million tons, and natural gas production reached 35 BCM in 2023.
  • Sector Growth: The sector’s expansion is supported by ₹25,000 crore under the PLI Scheme for infrastructure development.

India’s Oil & Gas sector is set for steady growth, with increasing domestic demand, government initiatives, and large investments driving its future trajectory.