As one of the six core industries in India, the oil and gas industry has a very significant role to play in the growth of the Indian economy. The petroleum and natural gas sector which includes transportation, refining and marketing of petroleum products and gas constitutes over 15 per cent of the country's gross domestic product (GDP). About a decade ago, the petroleum sector was almost completely controlled by national oil companies.
Presently, there are many players both in the upstream and downstream sectors. With the significant discoveries of oil and gas in various sites in recent years, India is looking at huge investments in the sector. Growth continues apace, and the Indian oil sector looks vibrant with opportunities. In November 2008, the Cabinet Committee on Economic Affairs (CCEA) agreed to the awarding of 44 oil and gas exploration blocks under the seventh round of auction of the New Exploration Licensing Policy (Nelp-VII).
The allocation is likely to bring in investments worth US$ 1.5 billion. Oil and Natural Gas Corporation (ONGC), which is India's largest oil and gas producer, along with its partners, won the maximum number of 20 blocks. Winners of the blocks had also committed an investment of US$ 3.5 billion for data collection and exploration in these blocks.
As per an Investment Commission report, petroleum exports have also emerged as the single largest foreign exchange earner, accounting for 11.5 per cent and 15 per cent of the total exports in 2005-06 and 2006-07, with export of petroleum products touching US$ 20.03 billion during April-December 2007. According to an official release by the Ministry of Petroleum and Natural Gas, India's total exports from the sector during April 2007 to February 2008 added up to US$ 128.15 billion
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