The India oil and gas downstream market size reached 166.93 Million Tons in 2024. Looking forward, IMARC Group expects the market to reach 233.43 Million Tons by 2033, exhibiting a growth rate (CAGR) of 3.50% during 2025-2033. The market benefits from rising energy demand, increasing vehicle ownership, and industrial expansion, supported by government initiatives for refinery modernization, ethanol blending, and cleaner fuels. Additionally, infrastructure investments and digitalization improve operational efficiency, driving sustained growth in refining and distribution.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | 166.93 Million Tons |
Market Forecast in 2033 | 233.43 Million Tons |
Market Growth Rate (2025-2033) | 3.50% |
Expansion of Refining Capacity and Infrastructure Development
India is ramping up investments to expand its refining capacity by 56 MMTPA, targeting 310 MMTPA by 2028 to meet growing domestic fuel demand and improve energy security. Public sector units like Indian Oil Corporation and private firms such as Reliance Industries are upgrading refineries with cleaner fuel technologies and efficiency enhancements. Strategic projects, including the 60 MMTPA Ratnagiri Refinery and Petrochemical Complex, are set to boost refining throughput. The government is also pushing for integrated refinery-petrochemical complexes to strengthen downstream value chains. Pipeline expansions and new storage terminals are being developed to streamline distribution and reduce logistics issues. These developments are positioning India as a global refining and petrochemical export hub while ensuring a stable and self-reliant fuel supply for the nation’s future energy needs.
Digitalization and Technological Advancements
Digital transformation is a major in India's downstream oil and gas industry. Refining plants and networks are embracing technologies such as predictive maintenance, process automation, and real-time data analysis to improve operational efficiency and minimize downtime. IoT-based sensor deployment, artificial intelligence (AI)-facilitated inventory management, and blockchain-assisted supply chain tracking are optimizing resource allocation and enhancing fuel quality traceability. Fuel retail stations are also moving towards technology-driven energy centers with intelligent payment systems, reward programs, and incorporated electric vehicle (EV) charging stations. Additionally, digital twins and cloud platforms are being utilized for improved refinery design and monitoring of performance. These technologies are facilitating cost competitiveness, enhanced safety norms, and customer-oriented delivery of services throughout the downstream value chain.
Shift Toward Cleaner and Greener Fuels
India’s downstream oil and gas sector is advancing toward sustainability by adopting cleaner fuel technologies and reducing import dependence. The government has accelerated the target for 20% ethanol blending (E20) in petrol from 2030 to 2025, driving significant changes in refining and distribution. Refineries are upgrading with desulfurization and hydrocracking units to produce low-emission fuels. Bharat Stage VI (BS-VI) fuels with 10 ppm sulfur content are now standard nationwide. Oil marketing companies are expanding their portfolios to include ethanol-blended fuels, compressed biogas (CBG), and hydrogen-blended fuels. These shifts are reinforced by growing consumer demand for cleaner energy and regulatory pressure to cut emissions. The development of alternative fuels and cleaner refining processes marks a strategic transformation in India’s fuel ecosystem, supporting energy security and environmental goals.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type and distribution.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes refineries, and petrochemical plants.
Distribution Insights:
A detailed breakup and analysis of the market based on the distribution have also been provided in the report. This includes retail, wholesale, and commercial.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million Tons |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Refineries, Petrochemical Plants |
Distributions Covered | Retail, Wholesale, Commercial |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: