Article’s

In recent years, India’s oil sector has undergone a profound transformation under the global wave of sustainability. The integration of Environmental, Social, and Governance (ESG) principles has evolved from being a mere compliance requirement into a decisive factor influencing both corporate strategy and investment behavior. This paper examines the microeconomic impact of ESG integration on India’s oil sector, focusing on how companies are adapting operationally and strategically, and how investors are recalibrating their decisions in response. Using secondary data analysis from government reports, corporate disclosures, sustainability indices, and investor trend studies, this research explores how ESG practices reshape profitability, risk perception, and competitiveness. The study concludes that ESG integration is redefining value creation in India’s oil sector, encouraging transparency, technological innovation, and responsible investment flows.