Natural Gas Downstream Market in India: An Overview
Alok Aditya and Krishna Raj
Abstract
India’s natural gas downstream market has undergone a significant transformation over the past two decades, marked by progressive institutional reforms and evolving regulatory frameworks. The shift from a highly regulated regime to a more liberalised market structure has been driven by policy initiatives aimed at enhancing infrastructure, improving market access, and establishing transparent pricing and tariff mechanisms. This paper examines the evolution of India’s downstream natural gas sector, focusing on the changing institutional landscape, the expansion of transmission and distribution networks, sectoral demand dynamics, and the identification of key trends, drivers, challenges, and opportunities that shape its development. It also highlights the pricing reforms, taxation structures, regulatory oversight, and current challenges and opportunities for the Indian natural gas market. It concludes that sustained institutional reform, regulatory stability, and strategic investment are critical to strengthening India’s natural gas market and ensuring its contribution to long-term energy security and economic resilience.