The paper presents the measurement, analysis and correction of closed orbit distortion (COD) in Indus-2 at 550 MeV injection energy and 2 GeV synchrotron radiation user run energy. The measured COD was analysed and fitted to understand major sources of errors in terms of the effective quadrupole misalignments. The rms COD was corrected down to less than 0.6 mm in both horizontal and vertical planes. A golden orbit was set for the operating synchrotron radiation beamlines. With COD correction, the injection efficiency at 550 MeV was improved by $\sim 50$% and the beam lifetime at 2 GeV was increased by $\sim8$ h. In this paper, the method of global COD correction based on singular value decomposition (SVD) of the orbit response matrix is described. Results for the COD correction in both horizontal and vertical planes at 550 MeV injection energy and at 2 GeV synchrotron radiation user run energy are discussed.