Petroleum Export Performance in India: Analysis of Growth and Structural Dynamics

Abstract

The Indian economy has experienced significant changes in its export structure, especially after adopting the export promotion outward-oriented development strategy in 1991. Petroleum exports have experienced a sudden rise, especially in the first decade of the 21st century, and became the second-largest export item in India after engineering products. The study examined the growth and structural dynamics of petroleum export performance in India during 1990-2019. It was found that petroleum product exports in India grew outstandingly during the study period, registering higher growth than imports and the production of these products. India outperformed the world and the majority of giant petroleum exporters in the global export market. The findings also confirmed the high degree of diversification in the composition and direction of petroleum exports. Petroleum trade in India also witnessed a high degree of intra-industry trade. Favourable government policies have contributed to the occurrence of this phenomenon. Consequently, India has become one of the leading petroleum product exporters despite its lack of global crude oil and refining technology. The existence of growth instability in these exports requires effective intervention at the policy level.