Indian Economy

The economy of India is the 12th largest in the world in terms of the rates of
market exchange while in terms of the purchasing power parity (PPP), it is the
4th largest in the world. Since its independence in the year 1947, the
economy of India has gradually grown and today it is one of the most
developing economies in the global scenario.
THE EARLY YEARS OF INDIAN ECONOMY
After independence, for a period of around one and a half decades, India
followed the social democratic economic policies. From the year 1991, to
keep pace with the changing trends in the market, a new liberalization policy
was formulated. The chief architect of this policy was Dr Manmohan Singh,
the then Finance Minister of India. Due to the economic liberalization policies
in the 1990s and the 2000s, the country steadily climbed up the economic
ladder and by the year 2008, it became the second fastest growing economy
in the globe.
THE SOCIO ECONOMIC DEVELOPMENT
According to economists and researchers, there has been a direct link
between the economic growth of India and social development. In fact the
favorable socio economic scenario of the country has contributed a lot
towards its development. Due to the improvement of the civic amenities such
as education, health care and lots more, the standard of living has also risen
which has put a significant positive impact on the Indian economy.
THE GROWTH OF VARIOUS SECTORS
The share of the service industry accounts to around 54% of the annual Gross
Domestic Product (GDP) of the country. Next are the industrial and
agricultural sectors which contribute around 29% and 17% respectively. Some
of the major agricultural export items consist of wheat, rice, tea, cotton, jute,
sugarcane and so on. Some of the other allied exports consist of steel,
chemical, textiles, cement, machinery, IT services and so on. Due to the
development of science and technology, the number and quality of exports
have also grown to a great extent which has led to favorable Indian economic
growth.
Since the year 2007, the economy of India has developed by more than 9%.
The growth rate of the decade has been around 7%. This growth rate has
improved the per capita income and the standard of living and poverty has
reduced by around 10%.
To complement this growing trend, the Indian service sector has also
performed well. Since the year 2007, the growth rate in this sector has been
around 11.18% on an average with around 53% contribution to the GDP.
During the same time, the industrial sector grew by around 10.63 % and
contributed around 29% to the GDP. The manufacturing sector experienced a
growth of around 12% which was a significant leap from the 8.98% in the
year 2005. In the communication and storage sector, the growth rate was

around 16.64%. The 10 leading Indian companies listed by Forbes Global

2000 in the year 2009 are:
Reliance Industries Limited (RIL)
State Bank of India (SBI)
Oil and Natural Gas Corporation (ONGC)
Steel Authority of India (SAIL)
Reliance Communications
Larsen & Toubro Limited (L&T)
Bharat Petroleum Corporation Limited (BPCL)
Bharat Heavy Electrical Limited (BHEL)
Housing Development Finance Corporation Ltd. (HDFC)
Tata Consultancy Services (TCS)
EFFECT OF THE ECONOMIC DOWNTURN
Like all other economies of the world, the Indian economic growth has also
been affected by the global meltdown. However, compared to other
countries, the effect of the recession was not huge here. This was partly due
to the fact that the economy in India is still a balance between open market
and social economic policies.
To cope with the economic meltdown and also to make the economy grow,
the government has decided to take certain steps. Around $559 billion has
been ear-marked to develop investment in infrastructure. Similarly, the rural
and the service sectors will also be developed significantly.
The favorable investment atmosphere and the market trends have paved a
good path for Indian economy growth.

ONGC
OIL AND NATURAL GAS CORPORATION LTD.

About the company

Oil and Natural Gas Corporation Limited (ONGC) is an Indian
multinational oil and gas company headquartered in Dehradun,
Uttarakhand, India. It is a Public Sector Undertaking (PSU) of the
Government of India, under the administrative control of the
Ministry of Petroleum and Natural Gas.
Rankings
ONGC is ranked as the Top Energy Company in India, Fifth in Asia
and 21st globally as per Platts Top 250 Global Energy Rankings;
Maintains place as World's Third ranked E&P Company in the list.
Ranked 21st among global Oil and Gas Operations industry in Forbes
Global 2000 list of the World's biggest companies for 2014; Ranked
176 in the overall list - based on Sales (US$ 29.6 billion), Profits
(US$ 4.5 billion), Assets (US$ 53.8 billion) and Market Value (US$
46.4 billion).
Valuable enterprise
ONGC won Petrofed Oil & Gas Industry Awards 2011 in three
categories - "Exploration & Production: Company of the Year",
"Project Management (above Rs. 2000 crore): Company of the Year"
and "Innovator of the Year: Team (Won by IOGPT)"
ONGC bagged Oil Industry Safety Directorate (OISD) awards for
"Best Overall Safety Performance of Oil and Gas Onshore Assets"
and "Most Consistent Safety Performer Award" (won by
Rajahmundry Asset of ONGC) for the year 2011-12. In addition, JV
operation at Panna gas field between ONGC, BG and Reliance,
operated by BG India won the OISD award for "Best Production
Platform Pvt/JV Companies"

ROLE OF OIL AND NATURAL GAS INDUSTRY IN INDIA GDP

The Role of Oil and Natural Gas Industry in India GDP is very
significant as it is one of the biggest contributors to both the Central
and State treasuries.

Role of Oil and Natural Gas Industry in India GDP-Highlights

India is the 6th largest consumer of petroleum
By the year 2010, India is expected to rank 4th in terms of
consumption of energy
The contribution of the Indian Oil and Natural Gas Industry is
nearly US$ 13.58 billion
All of the oil refineries in India, apart from two are operated by
the states

 The total refinery output in the period 2005-06 was 130.11

million tonnes
The growth rate of the refinery output was increased by 2.1 %
in the year 2005-06
The crude oil output at the end of 2006-07 was 33.98 million
tonnes
The growth rate of the crude oil output was increased by 5.6%
in the year 2006-07
The production of natural gas in the year 2006-07 was 31.55
billion cubic meters
Indian petroleum demand depends highly on import of oil and
natural gas
Around 70% of the demands are fed by the imports of oil and
natural gas
The security pertaining to energy has become one of the
primary concerns of the Central Government
Presently India is trying to grab a share of the oil and gas fields
from Central Asia to Myanmar and Africa
The area of interest for the Indian Oil and Natural Gas Industry
is to search for petroleum in both offshore and onshore blocks
Role of Oil and Natural Gas Industry in India GDP-World's
refiner
The cost effective refining in India is attracting the attention of
several international players
India is one of the most important markets for petroleum
products and crude oil
The crude oil from Middle East is easily transported to India by
means of the sea routes
Role of Oil and Natural Gas Industry in India GDP-

Investments Abroad
India is one of the largest investors in oil fields located abroad
Most of the Government owned oil companies have share in the
oil and gas fields in different places of the world such as Sudan,
Egypt, Libya, Ivory
Coast, Vietnam, Myanmar, Russia, Iraq, Qatar, and Australia
India has 20 % share in Sakhalin-I oil project in Russia

 The Oil and Natural Gas Corporation (ONGC) has entered into
an agreement with ENI to acquire 20-25 % share of the Congo
oil block
ONGC GROWTH STORY
ONGC was set up under the visionary leadership of Pandit Jawahar Lal Nehru. Pandit Nehru
reposed faith in Shri Keshav Dev Malviya who laid the foundation of ONGC in the form of Oil
and Gas division, under Geological Survey of India, in 1955. A few months later, it was
converted into an Oil and Natural Gas Directorate. The Directorate was converted into
Commission and christened Oil & Natural Gas Commission on 14th August 1956.
"Not only had India..set up her own machinery for oil exploration and exploitation... an
efficient oil commission had been built where a large number of bright young men and
women had been trained and they were doing good work" said Pandit JawaharLal Nehru,
India's first Prime Minister to Lord Mountbatten, on ONGC in 1959.
In 1994, Oil and Natural Gas Commission was converted in to a Corporation, and in 1997 it
was recognized as one of the Navratnas by the Government of India. Subsequently, it has
been conferred with Maharatna status in the year 2010.
In its 60 years of illustrious journey, ONGC has crossed many a milestone to realize the
energy aspirations of India. The journey of ONGC, over these years, has been a tale of
conviction, courage and commitment. ONGCs superlative efforts have resulted in converting
earlier frontier areas into new hydrocarbon provinces. From a modest beginning, ONGC has
grown to be one of the largest E&P companies in the world in terms of reserves and
production.
ONGC as an integrated Oil & Gas Corporate has developed in-house capability in all
aspects of exploration and production business i.e., Acquisition, Processing & Interpretation
(API) of Seismic data, drilling, work-over and well stimulation operations, engineering &
construction, production, processing, refining, transportation, marketing, applied R&D and
training, etc.
Today, ONGC has the highest market capitalization (among Indian public enterprises) of
over INR 3 lakh crores with 4,84,544 shareholders and the highest net Profit earning Indian
public enterprise with the net profit of Rs 22,095 Crores (after Tax) for the fiscal year 201415.

FOLLOWING ARE THE LAST 10 YEAR GROWTH TRENDS OF ONGC

Total
Liabilitie
s
Total
Assets

Mar 16
16003.65

Mar 15
17732.95

Mar 14
22094.81

Mar 13
20923.70

Mar 12
25122.92

Mar 11
18924.00

Mar 10
16767.56

Mar 09
16126.32

Mar 08
16701.65

Mar 07
15642.92

84560.24

88237.53

90603.47

88442.08

80968.07

71745.77

64018.40

68226.60

64513.06

60581.29

SWOT ANALYSIS
STRENGTHS
O.N.G.C LTD is perceived to be the leader in oil production industry.
It has a very efficient and professional management team.
Being an international company has sufficient resources and capital to invest.
O.N.G.C has ISO-9001 & ISO 14001 registration.
WEAKNESS
O.N.G.C is facing difficulties to produce oil from aging reservoirs.
OPPURTUNITY
Energy utilization of buried coal resource (700 -1700M), estimated 63BT
Equivalent to15000 BCM.
THREATS
Security of personnel & property especially crude oil continues to be a cause of
concern in certain area.
Some exploration Campaign Company involves high technology, high technology,
high investment and high risks.