India is growing more dependent on imports of crude oil, with the total share of imports in its oil consumption reaching 88.6% over the first ten months of its current fiscal year, which ends on March 31.
The data, from the country’s Petroleum Planning & Analysis Cell, a division of the oil ministry, reflects challenges in boosting domestic oil production despite significant government support in that direction.
India last month launched a licensing round for 50 oil and gas blocks in a bid to draw more foreign investment into its energy industry as demand continues to grow steadily. It is also building out wind and solar capacity to keep up with demand growth.
In January, Prime Minister Narendra Modi said that India’s energy sector offers $500 billion in investment opportunities, including in exploration, refining, and LNG. “Our energy sector is at the heart of our aspirations. It offers investment opportunities worth $500 billion. Therefore, my appeal is: Make in India, innovate in India, Scale with India, Invest in India,” Modi said in an address at the India Energy Week 2026.
By the end of this decade, India aims to raise investments in the oil and gas sector to $100 billion and targets to expand the scope of exploration to one million square kilometers. The Prime Minister noted that more than 170 blocks have already been awarded, and the Andaman and Nicobar basin is emerging as the next hydrocarbon hotspot.
In 2024, India surpassed China as the world’s largest oil demand driver, amid growing demand for fuel transportation in India and slowing gasoline and diesel demand in China due to the advance of electric vehicles and LNG-fueled trucks in the world’s top crude oil importer.
As demand has grown, so have imports, breaking records last fiscal year and on track to break them again this fiscal year. In January, preliminary data suggested that imports were about to hit an all-time high, reaching 5.2 million barrels daily as local refiners sought to diversify away from Russian crude.
By Irina Slav for Oilprice.com
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