{"id":353061,"date":"2025-12-31T19:58:08","date_gmt":"2025-12-31T14:28:08","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=353061"},"modified":"2026-01-03T09:49:16","modified_gmt":"2026-01-03T04:19:16","slug":"how-indias-oil-basket-has-changed-over-the-years","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-indias-oil-basket-has-changed-over-the-years\/","title":{"rendered":"How India\u2019s oil basket has changed over the years"},"content":{"rendered":"

Source: <\/strong>The post \u00a0\u201cHow India\u2019s oil basket has changed over the years’\u2019 has<\/strong> been created, based on “How India\u2019s oil basket has changed over the years\u201d <\/strong>published in \u201cThe Hindu\u201d on 31 December 2025. How India\u2019s oil basket has changed over the years.<\/strong><\/p>\n

\"How<\/p>\n

UPSC Syllabus: <\/strong>GS Paper-3- International Relations<\/p>\n

Context:<\/strong> India, the third-largest oil consumer globally<\/strong>, has historically relied on geopolitical navigation and economics<\/strong> to secure its energy needs. Over the decades, India\u2019s crude oil imports have shifted from heavy dependence on West Asia<\/strong> to a diversified global basket<\/strong>, with Russia emerging as a major supplier<\/strong> in recent years. The changes reflect India\u2019s efforts to balance energy security, economic viability, and geopolitical considerations<\/strong>.<\/p>\n

Early Dependence on West Asia:<\/strong><\/h2>\n
    \n
  1. Before 2005, over 70% of India\u2019s crude oil<\/strong> came from West Asian countries, primarily Saudi Arabia, Iraq, Iran, Kuwait, and UAE<\/strong>.<\/li>\n
  2. Even in 2011-12, more than 60% of crude oil imports<\/strong> came from seven West Asian nations, while African countries<\/strong> like Nigeria and Angola contributed around 20%.<\/li>\n
  3. This heavy reliance made India vulnerable to regional geopolitical tensions<\/strong>, sanctions, and supply disruptions.<\/li>\n<\/ol>\n

    Impact of Iran Sanctions:<\/strong><\/h2>\n
      \n
    1. In 2010-11, UN and U.S. sanctions on Iran<\/strong> restricted its oil exports, reducing India\u2019s imports from Iran from 11.3% to under 6%<\/strong> by 2013-14.<\/li>\n
    2. Sanctions were lifted in 2016, temporarily increasing India\u2019s imports from Iran to 12.7%<\/strong>.<\/li>\n
    3. Renewed U.S. sanctions in 2017 forced India to diversify further<\/strong>, boosting imports from the UAE and the U.S.<\/strong> and sharply reducing Iranian purchases by 91.8% in 2019-20<\/strong>.<\/li>\n<\/ol>\n

      Gradual Diversification (2005\u20132015):<\/strong><\/h2>\n
        \n
      1. India began sourcing oil from Africa (Nigeria, Angola) and Venezuela<\/strong> to reduce dependence on West Asia.<\/li>\n
      2. By 2025, India\u2019s imports were 40\u201345% from the Middle East, 8\u201310% from Africa, and 10\u201312% from the Americas<\/strong>, showing increased diversification<\/strong>.<\/li>\n
      3. Diversification helped India mitigate geopolitical risks<\/strong>, maintain economic efficiency, and ensure stable refinery operations.<\/li>\n<\/ol>\n

        Emergence of Russia as a Major Supplier:<\/strong><\/h2>\n
          \n
        1. Following Russia\u2019s sanctions from the EU and U.S. after the Ukraine crisis in 2022<\/strong>, India continued to purchase Russian oil due to discounted prices and compatibility with refineries<\/strong>.<\/li>\n
        2. Russia\u2019s share in India\u2019s crude oil basket rose from less than 2% in 2021-22<\/strong> to 21.6% in 2022-23<\/strong>, further increasing to 35.9% in 2023-24<\/strong> and 35.8% in 2024-25<\/strong>.<\/li>\n
        3. Russian crude, especially Urals, declined in price from $79.41 per barrel in April 2022<\/strong> to $66.49 per barrel in March 2025<\/strong>, enhancing its economic attractiveness.<\/li>\n
        4. Currently, Russia accounts for about one-third of India\u2019s total crude imports<\/strong>, while Iraq, Saudi Arabia, and UAE maintain marginal declines in their share.<\/li>\n<\/ol>\n

          Challenges in India\u2019s Oil Basket:<\/strong><\/h2>\n
            \n
          1. Reducing dependence on Russia is difficult, costly, and risky<\/strong> due to:\n