New Delhi: India's GDP is likely to rise by 6.5 percent if the country is self sufficient in crude oil production, PwC India Wednesday said in a report.
In the report titled 'It’s our turn now: E&P Partnership or Energy Security', PwC said: "India would have increased its GDP by a whopping 6.5 percent if the import of crude oil were avoided completely. Add to that the sector would have provided 9.4 million person years of employment over a period of 20 years."
If 50 percent of the domestic requirement is met by home production, it is likely to generate an additional value of USD 47.2 billion, as per the report.
Deepak Mahurkar, Leader Oil and Gas, PwC India said: "Energy security is compelling for the economic advantages which it brings and today we need a debate on the critical energy sector in India with the hope of arriving at a clear consensus on what should ideally shape the exploration and production sector."
Energy security is no longer just a desire but a critical imperative for India as it stands at the threshold of economic maturity, he added.
Oil imports in 2011-12 accounted for almost 50 percent of India's total exports. PwC analysis' states that 54 percent of the country's trade deficit was due to the oil trade deficit.
This fuelled a substantial weakening of the rupee and resulted in a drawdown of foreign exchange to the tune of USD 12.8 billion, a PwC statement said.
The drawdown could have been avoided had India produced 17 million tonnes over its current domestic production, according to the report.
In addition to the economic benefits, self sufficiency can generate an additional inflow for the government of an amount equivalent to almost 25 percent of the current total revenues that accrue to the government from the petroleum sector.