India's Performance on the Resource Governance Index
India received a "partial" score of 70, ranking 12th out of 58 countries. While it performed well on the Safeguards & Quality Controls component, lower scores on its Institutional & Legal Setting and Enabling environment produced an overall score that fell just short of "satisfactory."
(out of 58)
(out of 100)
|29||Institutional & Legal Setting||60|
|6||Safeguards & Quality Controls||83|
Institutional & Legal Setting (Rank: 29th/58, Score: 60/100) learn more
India's "partial" score of 60 reflects insufficient disclosure requirements, despite a comprehensive legal framework governing the hydrocarbon sector.
The Petroleum and Natural Gas Ministry sets licensing procedures and a cabinet committee of the executive branch grants licenses following open bidding. Petroleum companies sign production sharing contracts with the government. The Directorate General of Hydrocarbons, an office within the Petroleum and Natural Gas Ministry, regulates the upstream oil and gas sector.
The government receives some profit oil in-kind and sells it to domestic refineries at a subsidized rate. The Directorate General of Hydrocarbons collects non-tax revenues, which are deposited in either the national treasury or state government accounts.
Environmental impact assessments, including a social impact component, must be performed. Petroleum legislation is publicly available and defines basic fiscal terms; model production sharing contracts include profit-sharing formulas and detailed fiscal arrangements. India's Right to Information Act guarantees access to extractive industry information.
Reporting Practices (Rank: 13th/58, Score: 72/100) learn more
India received a "satisfactory" score of 72. While the government publishes useful data on a number of important aspects of the petroleum industry, there is little contract transparency.
The Petroleum and Natural Gas Ministry publishes information about licensing procedures and winning bids, but contract terms may be obtained only through the Right to Information Act. Publication of environmental impact assessments is not required.
The Finance Ministry provides production volumes, information on investments, subsidies, and aggregate revenues. The Petroleum and Natural Gas Ministry publishes data on reserves, production volumes, prices, exports, subsidies, and social payments, as well as company-by-company data and disaggregated revenue streams. The Directorate General of Hydrocarbons publishes reserve estimates, production volumes, company-by-company data, and profit receipts. Central bank reports include production volumes and information on exports.
Safeguards & Quality Controls (Rank: 6th/58, Score: 83/100) learn more
India earned a "satisfactory" score of 83, the product of substantial reporting requirements, including for state-owned companies.
Though contract terms are set by law, licensing authorities have some discretion when negotiating with companies. The legislature has limited oversight of the licensing process, and there is no clear method of appeal. Government officials must disclose potential conflicts of interest.
The Comptroller and Auditor General annually audit petroleum revenues. The reports are published online and reviewed by parliament. The Public Accounts Committee scrutinizes resource revenue reports, but not always in a timely fashion. National auditors may also conduct ad hoc audits of specific sectors.
Enabling Environment (Rank: 11th/58, Score: 61/100) learn more
With a relatively high global ranking for budgetary openness but poor performance on measurements of corruption control, India received a "partial" score of 61.
State-Owned Companies (Rank: 4th/45, Score: 92/100) learn more
India partially privatized its petroleum sector in the 1990s, but much of the industry is still dominated by four national oil companies, in which the state owns a controlling interest. State-owned companies still subsidize national fuel prices, though the government has made attempts at reform.
The Oil and Natural Gas Corporation, India's largest national oil company, publishes quarterly and annual information on reserves, production volumes, prices, production costs, subsidies, and disaggregated revenue streams. Its accounts are audited and the results are published. Annual reports contain information on the composition of the company's board of directors and decision-making processes.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||605.9||944.7||1,848.0|
|GDP per capita, PPP (constant 2005 international $)||1,722||2,209||3,203|
|Extractive exports (% total exports)||6||18||22|
|Source: World Bank.|