The oil and gas industry is amongst the six core industries in India. This industry is a major factor for the growth being witnessed in the Indian economy today. The natural gas and petroleum sector, which is inclusive of refining, transportation, and marketing of these products, contributes about 15% to India's GDP.
Exports from petroleum are the highest in terms of the foreign currency amassed and accounts for 17% of the total exports. The Economic Affairs Committee gave 44 oil and gas blocks for exploration under the New Licensing Policy. These allocations will bring investments worth US$ 1.5 billion in this sector.
As this is an ever growing sector, investment in this industry promises a great deal.
The investments by public sector oil companies is going to be US$ 11.33 billion to expand supplies and build new networks for transportation of oil and gas.
The policies of the government are a further boost to foreign investment in this industry.
These are government initiatives:
India's energy sector will be instrumental in providing avenues worth US$ 120 billion to 150 billion over the coming 5 years. As per the Investment Commission, the opportunities in the oil and gas sector are projected to reach US$ 35â€“40 billion by 2012.
Another reason that investments in this sector can be useful is that crude oil coming from the Middle East region can easily be transported to India. Also, India offers cost-effective refining technologies.
As the energy sector is never going to slow down or lose its sheen, the growth prospects are enormous in this industry.