Context:
India’s crude oil import basket witnessed a significant shift in November 2025, with Russian oil imports touching a six-month high, even as trade tensions with the United States intensified over tariff measures. The development highlights India’s calibrated energy diplomacy amid competing geopolitical and economic pressures.
Key Highlights:
- Energy Import Trends
- Russian oil accounted for nearly 35% of India’s total crude oil imports in November 2025.
- India imported 7.7 million tonnes of crude oil from Russia, valued at $3.7 billion.
- This marked the highest monthly intake from Russia in six months, reflecting price-driven procurement.
- U.S. Oil Imports and Trade Dynamics
- U.S. crude oil imports rose to a seven-month high, contributing about 12.6–13% of India’s total oil imports.
- India imported 2.8 million tonnes of oil from the U.S., valued at $1.4 billion.
- Combined share of Russia and the U.S. neared 50% of India’s total crude imports in November.
- Tariff Dispute Background
- In August 2025, the U.S. raised tariffs on Indian exports from 25% to 50%, citing India’s continued purchase of Russian oil.
- The move came despite India signalling willingness to gradually reduce dependence on Russian crude.
- Strategic Balancing
- India’s energy strategy reflects a dual balancing act:
- Securing affordable crude oil to manage inflation and growth.
- Preserving strategic autonomy amid geopolitical contestations.
Relevant Prelims Points:
- Tariff: A tax imposed on imported or exported goods to regulate trade.
- Russia has emerged as India’s largest crude oil supplier since the Ukraine conflict.
- Energy security is a core component of India’s economic stability.
- Diversification of oil suppliers helps reduce supply shock risks.
Relevant Mains Points:
- India’s oil import strategy reflects multi-alignment, not bloc politics.
- Punitive tariffs risk undermining India–U.S. trade cooperation, especially in critical supply chains.
- Continued Russian imports indicate limits of secondary sanctions diplomacy.
- Energy procurement decisions are driven by price, availability, and insurance logistics, not ideology.
- Way Forward
- Sustained diversification of crude sources, including Latin America and Africa.
- Diplomatic engagement with the U.S. for tariff rationalisation.
- Accelerated transition to renewable energy and strategic petroleum reserves to reduce import vulnerability.
UPSC Relevance:
GS Paper II – International Relations
GS Paper III – Indian Economy, Energy Security