India Remains Dependent on Imports for 90% of Oil Demand
Despite a decline in dependence on primary energy imports, India remains highly dependent, at a massive 90%, on crude oil imports for its consumption, a new industry report has shown. India’s dependence on primary energy imports fell to 42% in the financial year 2025 from 47% in FY 2017, according to a joint report by the Confederation of Indian Industry (CII) and EY. However, India remains…
India continues to rely heavily on crude oil imports, meeting 90% of its demand through overseas purchases, according to a recent industry report. Despite a slight reduction in overall primary energy imports from 47% in FY 2017 to 42% in FY 2025, the report highlights India's persistent dependence on imported oil. The Confederation of Indian Industry (CII) and Ernst & Young (EY) jointly prepared the report.
India, the world's third-largest crude oil importer, has seen this dependence increase over the years due to increasing demand and declining domestic production. The Middle East crisis has further intensified this reliance, prompting the government to explore strategic storage solutions. Oil and Natural Gas Corporation (ONGC), India's top oil explorer, plans to construct a new storage facility in Mangaluru with a capacity to hold 13 million barrels of oil.
The Iran war and disruption in crude flows through the Strait of Hormuz have made India search for alternatives to Middle Eastern supply. While record crude oil imports from Russia have provided some relief, India recognizes the need for additional storage sites to accommodate both commercial and strategic reserves. Currently, India's maximum reserve capacity can only cover eight days of national oil demand, making it highly vulnerable to supply shocks.
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