India has started sourcing its crude oil from 40 countries in a diversification meant to bolster its energy security.
- Roughly 60% of India's crude imports now arrive by alternate corridor.
Need for diversification
- Ongoing US-Israel conflict with Iran leading to the closure of the key shipping route through the Strait of Hormuz through which ~40% of India's crude imports pass.
- Clean cooking programmes had led to India’s LPG imports surging nearly three-fold in the past decade. (Indian Oil Market Outlook to 2030 by International Energy Agency)
- India produces only about 40% of its LPG requirement. The rest is imported, overwhelmingly from the same region now at war.
- Sovereignty Conflict: The US is exerting pressure on India to reduce Russian oil imports by framing them as requiring "permission” (e.g., granting a temporary 30-day waiver).
Status of India’s energy imports
- India imported around 300 million metric tons of crude and petroleum products in 2024-25.
- The oil and gas sector alone accounts for nearly 28 % of India’s total trade by volume.
- India currently meets about 88 % of its crude oil and 51 % of its gas needs through imports.
- India is the third largest importer, fourth largest refiner, and fifth largest exporter of petroleum products globally.
Steps taken by India to diversify energy sources
- India signed a $3 billion deal to buy liquefied natural gas from the United Arab Emirates (UAE).
- India signs its first LPG term deal with the US to import 2.2 million tonnes of cooking gas.
- Strategic Petroleum Reserves (SPR): Indian Strategic Petroleum Reserve Limited (ISPRL), has established SPR facilities at 3 locations (Vishakhapatnam, Mangaluru, and Padur)
- ONGC Videsh Ltd. and private companies have undertaken various outreach oil and gas exploration projects in African countries
- India and Canada signed Joint Statement on Energy Cooperation at India Energy Week 2026
