FDI in Indian Petroleum Sector
Index
Topic Page Number
1. Introduction…………………………………………………………. 3
2. Literature Review……………………………………………………. 4
3.1. Overview of Indian Petroleum Industry…………………… 4
3.2. Domestic Crude Production and Import in India………….. 5
3.3. Need of FDI in Indian Petroleum Industry………………… 5
3.4. Government policy: FDI in Petroleum Sector: History
Of Liberalization……………………………………………. 7
3.5. Sector Prospect……………………………............................ 8
3. Research Question…………………………………………………….. 8
1. Introduction:
The oil and petroleum industry are the backbone of all the developing economy. Refined petroleum products are of essential needs in our daily life and also are the fundamental parts of the economy starting from cooking to transportation, employment and all other fields. According to Tang (1994), all the developing nation especially in Asia has experienced the significant rise in the demand of oil and petroleum product with their growing economy. According to his study, between 1976 and 1993, the demand for oil production and refinery capacity expansion recorded annual increment of 5.2% and 4.3% respectively (Tang, 1994). This trend of rising demand of oil and petroleum product along with concentration of petroleum reserves in selected parts of the world and difference in crude quality along with uncertainty in crude oil price makes it more necessary for countries like India to encourage FDI in petroleum and natural gas sector to ensure the balance between demand and supply of the same remains in control.
Foreign direct investment or FDI always plays an important role in the development of any country. Developing countries like India need FDI to ensure economic growth and development throughout the sectors. FDI acts as a...