India has faced significant headwinds in attracting investment, due mostly to the highly regulated pricing regime and lethargic regulatory regime.
June 15, 2021
Asia - South West
Southern Asia, bordering the Arabian Sea and the Bay of Bengal, between Myanmar and Pakistan.
India has a hybrid system of production sharing contracts (PSCs) containing elements of royalty, as well as sharing of production with the Government.
Prior to the onset of the COVID-19 pandemic, the International Monetary Fund had reduced its growth prediction for FY 2020 to 4.8% from a previous estimate of 6.1 percent. The slowing growth reflected a sharp decline in private sector consumption and reduced activity in manufacturing, agriculture, and construction. The stock of foreign direct investment (FDI) in India has declined a full percentage point over the last six years according to data from the Department for Promotion of Industry and Internal Trade (DPIIT). This mirrors a similar drop in Indian private investment during the same period.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
© 2021 Oil & Gas Advisors Limited
Website by Rugby Web Design