India’s Import Dependence
- India’s Dependence on OPEC Countries: India’s imports from OPEC countries constitute 85% of our total crude imports and 94% of the gas imports.
- India’s Rising Crude Oil Import: According to the World Energy Outlook 2021 data, India ranks 3rd globally in crude oil imports after China and the U.S. The oil demand is growing at 3-4% a year in India.
- India ranks a distant 21st in crude oil production and 26th in natural gas production.
- Russia has continued to be the single largest supplier of crude oil for India, which is converted into petrol and diesel at refineries.
- Russia’s share of India’s imports rose to 1.64 million barrels per day in March 2023, taking a 34% share.
- Saudi Arabia was India’s second largest supplier and Iraq was the third biggest supplier of crude oil in March 2023.
- India is the 4th largest importer of liquefied natural gas (LNG).
- Crude oil imports in India in April 2022-January 2023 rose 9.4% year on year to 192.4 million tonnes.
- Vulnerable Indian Economy: Heavy reliance on oil imports make the Indian economy vulnerable to volatility in international oil prices, in addition to having a significant bearing on the country’s trade deficit, foreign exchange reserves, rupee’s exchange rate, and inflation.