India’s downstream oil and gas industry is operating closer to its breaking point than many realise, with ageing infrastructure driving unplanned downtime and hitting both production and profits, according to a new survey from Integrated Global Services (IGS).

The survey of industry leaders across India’s downstream sector found that 60% of respondents estimate nearly one in three of their assets are operating beyond their intended lifespan, with 25% reporting that over half of their installed base has exceeded design life.

The impact is immediate and measurable. Over the past 12 months, 57% of respondents reported major production or throughput losses, along with financial, safety, and reliability consequences, while 35% faced minor disruptions. Only 8% said they experienced no material impact.

Ageing assets are also constraining sustainability efforts. 40% of respondents cited legacy equipment as the biggest barrier to reducing emissions while maintaining output, followed by cost and capital limits at 30%.

These pressures are reshaping how operators assess resilience. Just 15% said they were ‘very confident’ in meeting future demand growth without adding operational risk, while 45% were ‘somewhat confident’ and 30% not confident at all.

Rupam Saikia, General Manager for India at IGS, warned: "India’s downstream sector is operating closer to its limits than many may realise, leaving little room for unexpected disruptions. When disruptions do occur, the knock-on effects are immediate. We’ve found that a single day of downtime in large-scale downstream units in India can result in losses ranging from $30M USD–$150M USD+.”

He added: "The findings show a sector that understands the scale of the challenge ahead. Demand is rising, assets are aging and sustainability expectations are intensifying. The refineries that remain competitive will be those that treat asset integrity as strategy. Resilience and protection of profit margins can be engineered, and it starts with extending the life of critical assets.”

With the sector stretched operationally and strategically cautious, the survey paints a stark picture: resilience is no longer guaranteed, and the cost of downtime is escalating fast.