The Indian oil industry has progressed in leaps and bounds since the country’s independence. The government’s declaration of the oil industry as a core sector industry has helped its rapid expansion in recent years, and it has contributed significantly to the country’s economy. Although the country’s crude oil output has increased steadily, a major portion of its oil-related requirements need to be imported, mainly from the Middle East. This is because the domestic oil production is unable to keep up with the increasing demand, which has been mainly fueled by the growth of the country’s automobile industry. India is one of the world’s largest consumers of oil and the domestic oil companies are trying to reduce the existing demand-supply gap by raising their distillation capacity. Already, the government has a network of cross-subsidies to protect these oil companies from fluctuations in international oil prices. With oil making up for a substantial part of the country’s consumption of primary energy, the industry receives a lot of government support. The oil industry has also attracted foreign investment to a large extent. Going forward, the expansion of the refining segment should enable India to have a significant presence in the global oil market. Hide this