Indian oil demand increases modestly - PIW

Structural shifts in the economy with industrial production being replaced by service industries are, according to Petroleum Intelligence Weekly (PIW), having a growing impact on the Indian economy.

Despite GDP growth of 5.4% in 2001, oil products consumption declined.  Revised state estimates of oil demand assume a long term base case growth rate of 3.7% instead of 6% previously, with consumption reaching 2.47 mbd by 2006-07 (up from 2.22 mbd in 2002).  Despite a robust start, GDP growth is expected to fall this year because of the severe drought.