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India's Crude Oil Import Dependency

India is the world's third-largest crude oil importer and second-largest LPG importer. West Asia (the Gulf region) supplies approximately 80–90% of India's crude oil imports and a large proportion of its LPG. This structural dependency makes India's external sector highly vulnerable to geopolitical developments in the region. Every US$10 increase in global crude prices is estimated to widen India's CAD by approximately 0.3–0.4% of GDP, assuming volumes remain constant.

Key details
  • India's crude oil import bill in 2023-24: approximately US$ 132 billion
  • Key West Asian suppliers: Saudi Arabia, UAE, Iraq, Kuwait (under OPEC+)
  • India's strategic oil reserves: maintained by the Indian Strategic Petroleum Reserves Limited (ISPRL) at Visakhapatnam, Mangalore, and Padur (combined capacity ~5.33 million tonnes)
  • India imports nearly 87% of its crude oil requirements
  • The petroleum, oil, and lubricant (POL) segment constitutes nearly 25–27% of India's total import bill
  • India has been diversifying oil sources by increasing imports from Russia (significant surge since 2022) and the US
In the news

Tracked since March 26, 2026 · last seen July 28, 2026 · updates as the daily brief publishes

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