A core problem in domestic oil: Widening gap between targets and output

A persistent gap between output and targets has played its part in subdued core-sector growth

One of the notable but unnoticed anomalies in the data set that makes up India’s core sector is the widening gap between domestic oil production targets and actual output.  

The core sector includes production of crude oil, natural gas, refinery products — collectively known as the Petroleum, Oil and Lubricants (POL) sector — coal, fertilisers, steel, cement and electricity. A slowdown in any of them could be a leading indicator of a slowdown in economic demand. In the case of oil, however, the data reflects a structural problem that has been occurring over a fairly long time (see table).  

Analytical notes based