Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
India’s reliance on imported oil rises to almost 89% as local production falls behind

India’s reliance on imported oil rises to almost 89% as local production falls behind

101 finance101 finance2026/02/24 11:00
By:101 finance

India's Rising Reliance on Oil Imports

India's dependence on imported crude oil has continued to climb, with imports accounting for 88.6% of the nation's oil consumption during the first ten months of the current fiscal year, which concludes on March 31.

According to figures from the Petroleum Planning & Analysis Cell under the Ministry of Petroleum, the country faces ongoing difficulties in increasing domestic oil output, despite substantial government initiatives aimed at boosting local production.

Efforts to Attract Energy Investment

In an effort to attract more international capital to its energy sector, India recently opened a new licensing round for 50 oil and gas blocks. Alongside these efforts, India is rapidly expanding its wind and solar infrastructure to meet the growing energy demand.

Major Investment Opportunities in Energy

During India Energy Week 2026, Prime Minister Narendra Modi highlighted that the country's energy industry presents $500 billion worth of investment prospects, spanning exploration, refining, and LNG. He emphasized, “Our energy sector is central to our ambitions. There are $500 billion in investment opportunities. So, I urge: Make in India, innovate in India, scale with India, and invest in India.”

Future Goals for Oil and Gas

Looking ahead to the end of the decade, India intends to boost investments in oil and gas to $100 billion and expand exploration activities to cover one million square kilometers. The Prime Minister also noted that over 170 exploration blocks have already been allocated, with the Andaman and Nicobar basin emerging as a promising new area for hydrocarbons.

India Becomes the Leading Driver of Oil Demand

In 2024, India overtook China as the primary force behind global oil demand growth. This shift is driven by rising transportation fuel needs in India, while China's demand for gasoline and diesel slows due to the increasing use of electric vehicles and LNG-powered trucks.

Record-Breaking Oil Imports

As India's appetite for oil grows, so do its import volumes, which set new records last fiscal year and are poised to do so again. Preliminary data from January indicated that imports were on track to reach an unprecedented 5.2 million barrels per day, as domestic refiners sought to diversify away from Russian crude supplies.

By Irina Slav for Oilprice.com

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!