India's Energy Import Dependence and Diversification Strategy
India imports approximately 85-88% of its crude oil needs. Energy import dependence is a structural feature of the Indian economy, not a policy failure — India's domestic hydrocarbon reserves are limited relative to its consumption. The strategic response has been to diversify suppliers (Russia, US, Africa), build strategic petroleum reserves, and promote alternatives (ethanol blending, natural gas, renewables).
- Strategic Petroleum Reserves (SPR): India has three underground caverns at Visakhapatnam, Mangaluru, and Padur — combined capacity ~5.33 million tonnes (~9-10 days of import cover).
- Ethanol Blending: Target of 20% ethanol blending in petrol by 2025-26 — reduces crude demand.
- LNG diversification: India is expanding LNG terminal capacity and signing long-term contracts with the US (Sabine Pass, Corpus Christi), Australia (Gorgon, Ichthys), and Qatar.
- India-US energy trade: Under the bilateral Strategic Energy Partnership, the US has become a significant crude and LNG supplier; the LPG agreement (2.2 MTPA) fits this framework.
● Tracked since March 15, 2026 · last seen June 13, 2026 · updates as the daily brief publishes
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