India Widens Crude Oil Import Base with Higher Purchases from New Suppliers: Economic Survey
India has diversified its crude oil import sources by increasing purchases from countries such as the US, Brazil, and Libya while reducing dependence on traditional suppliers
According to the Economic Survey 2025–26, India has widened its crude oil import base over the past year as part of a strategy to reduce dependence on a few suppliers and improve energy security.
According to the Survey, during FY26 from April to November, India increased crude oil imports from a wider set of countries. Imports from Libya, Egypt, Brazil, the United States, and Brunei rose sharply compared to the same period last year. At the same time, imports from traditional suppliers such as Russia, Saudi Arabia, Iraq, and Venezuela declined.
The Survey said this change reflects a deliberate shift in India’s sourcing strategy. Instead of relying heavily on a limited group of oil-producing nations, India is spreading its purchases across more countries. This helps reduce supply risks linked to geopolitical tensions, sanctions, or production disruptions in any single region.
India is one of the world’s largest crude oil importers and depends on imports for more than 85% of its oil needs. Because of this high dependence, changes in global oil markets have a direct impact on inflation, trade balance, and government finances. The Survey said diversification of oil imports is important to manage these risks.
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In recent years, India increased crude imports from Russia due to discounted prices. However, the Survey data shows that India is now balancing cost considerations with long-term supply stability. By sourcing oil from Africa, the Americas, and Southeast Asia, India is improving flexibility in procurement.
The Survey also noted that global energy markets remain volatile due to conflicts, supply cuts, and changing demand patterns. In such an environment, a diversified import basket gives India better bargaining power and reduces exposure to sudden shocks.
Wider sourcing also helps Indian refiners handle different grades of crude more efficiently. Many Indian refineries are designed to process a mix of crude types, which allows the country to switch suppliers without major technical issues.
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