The correct option is 1 only
Explanation
India’s natural gas economy is driven by specific sectoral demands and a mix of domestic production and imports. The allocation of domestic gas is regulated by government policies which prioritize critical sectors, while the deficit is met through Liquefied Natural Gas (LNG) imports.
Statement-wise Analysis:
- Statement 1 is Correct: The fertilizer sector is the largest consumer of natural gas in India. To ensure food security and manage subsidy costs, the government prioritizes the allocation of domestic gas to the fertilizer industry (specifically for urea production). When combined with other industrial uses (such as refining, petrochemicals, and manufacturing), these sectors dominate India's natural gas consumption profile.
- Statement 2 is Incorrect: The share of LNG imports in India’s total gas supply has increased significantly over the last decade, rather than declined. Due to stagnant or fluctuating domestic production and rising demand, India’s import dependency for natural gas has grown, currently accounting for approximately 50% of the total consumption.
Key Takeaway: The fertilizer sector is the largest consumer of natural gas in India. India is a net importer of natural gas, and the share of LNG in the total energy mix has risen over the last decade to bridge the demand-supply gap.