India’s Rising Oil Imports from the United States

India has increased its oil imports from the United States as of January 2025. This shift marks a notable change in the country’s energy sourcing strategy. The data reveals that imports surged to 218,400 barrels per day, a substantial rise from 70,600 barrels per day in December 2024. This development positions the United States as India’s fifth largest oil supplier.

Current Energy Landscape

India is the world’s third largest oil importer and consumer. The country’s refiners are preparing for a larger influx of energy imports from the US. The goal is to elevate purchases from $15 billion to $25 billion this year. In contrast, India’s imports from Russia have also increased, albeit modestly, by 4.3% to 1.58 million barrels per day.

Impact of Sanctions on Russian Oil

Western sanctions on Russia have disrupted global oil trade. These sanctions compel Indian refiners to seek alternative suppliers. They are now required to buy Russian oil only from companies and ships not sanctioned by the United States. This has led to a strategic pivot in sourcing oil.

Middle Eastern Oil Imports

Imports from the Middle East have also risen, increasing by 6.5% in January to reach 2.7 million barrels per day. Iraq remains India’s second largest supplier, followed closely by Saudi Arabia and the United Arab Emirates. The share of Middle Eastern oil in India’s total crude imports has reached a 27-month high, accounting for approximately 53%.

Long-Term Trends in Oil Imports

For the first ten months of the current fiscal year, India’s average oil imports have increased by 4.5% to 4.8 million barrels per day. This trend indicates a growing reliance on diverse oil sources, particularly in light of geopolitical tensions affecting traditional suppliers.

Future Outlook

As the geopolitical landscape evolves, India’s energy strategy may continue to adapt. The emphasis on diversifying oil imports is likely to remain a priority. The ongoing sanctions on Russia will further influence India’s procurement strategies in the global oil market.

Questions for UPSC:

1. Examine the implications of the United States becoming India’s fifth largest oil supplier.
2. Critically discuss the impact of Western sanctions on the global oil trade and India’s sourcing strategies.
3. Discuss in the light of current geopolitical dynamics how India’s oil import patterns may evolve in the next decade.
4. With suitable examples, analyse the role of Middle Eastern countries in India’s energy security framework.

Answer Hints:

1. Examine the implications of the United States becoming India’s fifth largest oil supplier.

1. Increased energy security for India by diversifying sources away from traditional suppliers.
2. Potential for stronger economic ties between India and the US, enhancing bilateral relations.
3. Shift in global oil supply dynamics, with the US playing a larger role in Asian markets.
4. Impact on pricing and availability of oil, potentially leading to more competitive rates for India.
5. Increased influence of US energy policies on Indian energy strategies and investments.

2. Critically discuss the impact of Western sanctions on the global oil trade and India’s sourcing strategies.

1. Sanctions have disrupted traditional supply chains, forcing countries to seek alternative suppliers.
2. India’s reliance on Russian oil is complicated by the need to avoid sanctioned entities.
3. Refiners are adapting by increasing imports from the US and Middle Eastern countries.
4. Global oil prices have become more volatile due to geopolitical tensions and sanctions.
5. Sanctions may lead to long-term shifts in global energy alliances and trade patterns.

3. Discuss in the light of current geopolitical dynamics how India’s oil import patterns may evolve in the next decade.

1. Increased diversification of oil sources to mitigate risks associated with geopolitical tensions.
2. Potential growth in renewable energy investments impacting traditional oil dependency.
3. Strategic partnerships with non-Western suppliers to ensure stable energy flows.
4. Adaptation to evolving US foreign policy and its implications for energy imports.
5. Focus on energy security and sustainability to align with global climate commitments.

4. With suitable examples, analyse the role of Middle Eastern countries in India’s energy security framework.

1. Middle Eastern countries like Iraq and Saudi Arabia are key suppliers, providing stability in supply.
2. In January, Middle Eastern oil imports rose , denoting their importance.
3. India’s energy security is boosted by long-term contracts with these nations.
4. Geopolitical relationships with Middle Eastern countries affect pricing and supply reliability.
5. Middle Eastern oil plays a critical role in balancing India’s energy mix amid global uncertainties.