Along with liberalization and privatization, the overall economy of India grew. Apart from nationalisation of foreign companies, there were other important developments during seventies and eighties which needs to be mentioned here to understand the liberalisation process of this industry.
In order to encourage the involvement of the private sector in production and exploration, the government set up the Directorate General of Hydrocarbon.
Out of these, 24 blocks were awarded to different parties. However, their influence diminished over the years. The demand for petroleum products increased at an annual rate of 5. Another major incident was the discovery of Bombay High, which changed the scenario of the Indian petroleum industry drastically.
Due to political changes finalisation of contracts against the fourth round of bidding was deferred. Existing public sector refineries will also face many more hurdles in the de-regulated economy.
This gave a tremendous boost to the petroleum industry in India. It started mainly in the northeastern part of India especially in the place called Digboi in the state of Assam.
The liberalisation process which had been started earlier at least in hydrocarbon sector was accelerated and extended to other sectors of the economy in the name of structural adjustment process SAP. The Indian petroleum industry Globalization and indian petroleum industry sponsored completely by the government, and the management control of the petroleum industry and all its related activity was entirely with the government.
The government of India has taken several measures in order to ensure that the Globalization of the Indian Petroleum Industry is successful for the industry. Our analysis will focus on a exploration and production b refining c marketing.
This gave a tremendous boost to the petroleum industry in India. But Indian Petroleum Industry stumbled a bit in the year when the Indian economy observed a slow down in its economic rate along with the overall industrial output. By April, it will be fully dismantalled and prices of petroleum products will be determined on the basis of import parity system.
Our research shows that in the past four decades, ONGCL and OIL have increasingly become dependent on foreign companies in all major operational activities. The government also eased the stringent regulation process on the petroleum industry. Though the declared policy of the government of the post independent India was to develop this vital industry under public sector, in actual practice, the industry from its inception was very much dependent on foreign technology, capital and even on expert personnel.
As collaboration with Anglo- American oil majors were ruled out, other alternatives were explored. The main features of SAP were i privatisation and ii opening up of economy to foreign companies. The incentives that were declared by the government to encourage Globalization and the Indian Petroleum Industry are that on imports that were required for petroleum operations custom duty would not have to be paid, state participation is not compulsory, no tax on the production of crude oil, provisions for liberal depreciation, tax holidays for 7 years from the day that production starts, and the freedom to sell natural gas and crude oil in the domestic market at prices that are related to the market.
All these factors make investments in the Indian petroleum industry an attractive proposition for foreign investors. After independencethe newly independent state wanted to play significant role in this vital industry. The effect of de-regulation is clearly visible now.
The industry began to grow at a tremendous pace.
Later, Reliance Industries Ltd. The negative Effects of Globalization on Indian Industry are that with the coming of technology the number of labor required decreased and this resulted in many people being removed from their jobs.
During the mentioned period, the production of petroleum products increased from Since then, the privatisation process of the exploration and production activities have been accelerated.
Against this background, we shall discuss the effect of post economic liberalisation on this vital industry. Now APM has lost its relevance.Effects of Globalization on Indian Industry started when the government opened the country's markets to foreign investments in the early s.
Globalization of the Indian Industry took place in its various sectors such as steel, pharmaceutical, petroleum, chemical, textile, cement, retail, and BPO.4/5(51). Globalization and the Indian Petroleum Industry By Dipankar Dey Asia-Europe Dialogue December 7, To overcome the.
severe balance of payment crisis ofthe government of India took resort to the International Monetary Fund (IMF) and the World Bank prescriptions to bail out its ailing economy. The Indian petroleum industry was sponsored completely by the government, and the management control of the petroleum industry and all its related activity was entirely with the government.
The petroleum industry has the most significant role to play in changing the Indian economy from an agrarian economy to an industrial economy. The petroleum industry has contributed heavily to the manufacturing industry in the country through foreign trade in petroleum products. Rapid globalization, fast-changing technology, and the changing methods in the way business is conducted have brought significant changes and enormous opportunities for petroleum companies in India to.
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Globalization and the Indian Petroleum Industry. By Dipankar Dey Asia-Europe Dialogue December 7, To overcome the severe balance of payment crisis ofthe government of India took resort to the International Monetary Fund (IMF) and the World Bank prescriptions to bail out its.
Globalization and the Indian Petroleum Industry To overcome the severe balance of payment crisis ofthe government of India took resort to the International Monetary Fund (IMF) and the World Bank prescriptions to bail out its ailing economy.Download