With almost 1.1 billion inhabitants, India is the second most populous country in the world and the seventh-largest country by geographical area. In 2005, India’s GDP was about USD 644 billion. In terms of purchasing power parity (PPP)21, GDP stood at USD 3 362 which makes it the fourth-largest economy in the world (after the United States, China and Japan). Per capita income in PPP terms is around USD 3 582, about one-tenth of the OECD average. GDP growth in 2005 was 9.2%.
India has about 5.6 billion barrels of proven oil reserves (January 2007). Th e combination of rising oil consumption and fairly stable production levels leaves India increasingly dependent on imports to meet consumption needs; most of these imports are coming from the Middle East. In 2006, the country produced an average of 792 kb/d of total oil liquids, of which 87% (687 kb/d) was crude oil. During 2006, India’s demand for oil reached 2.64 mb/d.
In 2004, India decided to build a strategic petroleum reserve (SPR) in a phased manner. The work on the first phase started in 2007, with invitations for tender for the construction of rock caverns with a capacity of some 37 mb (5 Mt), which equates to 20 days of net imports or 15 days of consumption in 2005. The work is planned to be fi nished in 2010, after which the rock caverns will begin to be filled. A second phase is projected (but not yet scheduled), which would expand the storage capacity to 45 days of consumption (roughly 110 mb
or 15 Mt). Th e Integrated Energy Policy of 2006 states that the eff ectiveness of the reserves can be increased through co-operative operation with the reserves of other countries, such as IEA member countries.