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Overview
Among the top three large markets in global demand growth, oil and gas (O&G) are the leading industries in India that contribute to 5.2% of global oil demand. Furthermore, Indian refineries rank 4th in the world (*249 MTPA) in terms of capacity. As with China, India is highly reliant on imports: oil imports make up 84% of its annual needs and gas imports make up 53%.A surprising 25 percent of India's import bills in FY'19 came from O&G imports. All industry players in the Indian O&G sector are therefore keenly aware of the impact of COVID-19, including its widespread destruction of demand as well as the downward spiral of crude prices.
The Indian oil and gas industry has historically proven capable of responding to disasters in a number of different scenarios.COVID-19 has also proved to be quite successful so far, as the operation is nearly continuous, and fuel is available almost across the whole country.
A rapid recovery to start with, followed by a dip in the future due to a second or third wave of viral infections (a W shaped recovery) would be the two viable futures for the Indian economy. Despite the uncertainty about the exact recovery path that India's economic recovery will take, the O&G industry should focus on how to prepare to stand strong and 'thrive' after the start of the new year instead of what it must do to respond to COVID-19.Management should thus prioritize medium-to-long-term opportunities
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