Context:
India has strategically reduced its dependence on Russian crude oil as part of a long-term diversification strategy, according to government data. This reduction predates the imposition of 50% U.S. tariffs in August 2025, indicating that India’s energy import decisions are driven by economic, strategic, and geopolitical considerations, rather than short-term external pressure.
Key Highlights:
Oil Import Trends and Data
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Russian oil imports fell by 29% in value and 17% in volume in September 2025 compared to September 2024.
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Russia’s share in India’s total oil imports declined from 41% (Sept 2024) to 31% (Sept 2025).
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In 2024–25, Russian oil constituted 35.1% of India’s imports, declining to 32.3% in the first half of 2025–26.
Drivers Behind Russian Oil Dependence
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After the Russia–Ukraine war, India increased Russian oil imports due to Western sanctions and deep discounts offered by Russia.
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Russia’s share surged from 1.6% in 2020–21 to over 35% by 2024–25, reshaping India’s crude basket.
Diversification of Import Sources
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India is increasing oil imports from the U.S. and UAE in the first six months of 2025–26.
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U.S. oil share, which declined to 4.6% in 2024–25, has rebounded to 8% in H1 2025–26.
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UAE continues to remain a stable and reliable supplier.
Trade and Diplomatic Developments
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Formal India–U.S. trade talks have resumed, including discussions on a Bilateral Trade Agreement (BTA).
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The Ministry of Commerce and Industry clarified that U.S. tariffs are not the primary driver of India’s oil strategy.
Relevant Prelims Points:
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Issue: Over-dependence on a single crude oil supplier amid global geopolitical instability.
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Causes:
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Russia–Ukraine war
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Sanctions-led discounted Russian crude
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Government Initiatives:
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Energy import diversification policy
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Strengthening ties with U.S., UAE, and Middle East producers
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Benefits:
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Enhanced energy security
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Reduced geopolitical vulnerability
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Better bargaining power in global oil markets
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Challenges:
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Price volatility
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Logistical and refining compatibility issues
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Balancing strategic autonomy with trade pressures
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Impact:
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Supports India’s strategic autonomy
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Improves resilience against global supply shocks
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Relevant Mains Points:
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Key Concepts: Tariffs, diversification, energy security, bilateral trade agreements
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Organizations Involved:
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Ministry of Commerce and Industry
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Oil Marketing Companies (OMCs)
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Static Linkages:
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India’s policy of strategic autonomy
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Role of energy security in economic growth
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Analytical Perspective:
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Diversification reduces exposure to sanctions and geopolitical coercion
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Balancing relations with Russia and the U.S. reflects India’s multi-alignment strategy
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Way Forward:
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Further expand crude sourcing from Latin America and Africa
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Invest in strategic petroleum reserves
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Accelerate renewable energy transition to reduce long-term oil dependence
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UPSC Relevance (GS-wise):
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GS 2: India–U.S.–Russia relations, strategic autonomy, international trade negotiations
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GS 3: Energy security, external sector, crude oil imports, economic resilience