India’s energy import strategy is undergoing a significant transformation, marked by a decline in Russian crude oil purchases and a concurrent surge in imports from the United States. Shipping data shows an 8.4% reduction in Russian crude deliveries to India between April and September, a development closely following Washington’s decision to impose a 25% tariff on oil originating from Moscow.
Industry sources point to a tightening global oil market and reduced price incentives from Russian suppliers as key drivers behind this shift. Indian refiners are now actively reorienting their supply chains, increasing procurement from the Middle East and the United States, thereby altering long-standing trade relationships with Russia.
U.S. diplomatic pressure has also been a significant factor. Earlier statements from White House Trade Advisor Peter Navarro highlighted that India’s oil imports from Russia were perceived as indirectly financing the conflict in Ukraine, adding a geopolitical layer to energy trade decisions.
For the first half of the fiscal year, one major Indian refinery was importing an average of 1.75 million barrels of Russian crude per day. In September, these imports held at 1.6 million barrels daily, reflecting a notable 14.2% year-on-year decrease.
Examining the refining sector, private companies such as Reliance Industries Limited and Nayara Energy expanded their purchases of Russian oil in September. In contrast, state-owned refiners have reduced their reliance on Russian supplies. U.S. trade officials have indicated that a decrease in Russian imports is a prerequisite for tariff reductions and the finalization of trade agreements.
During the April to September period, India’s crude oil imports from the United States rose by 6.8%, averaging approximately 213,000 barrels per day. Total crude imports for India in September amounted to 4.88 million barrels per day, a modest 1% decrease from August but a 3.5% increase compared to September of the previous year.
The market share of Russian oil in India’s total imports has decreased from 40% to roughly 36% over the six-month span. The United States has gained market share, while imports from the Middle East have climbed to 45% from 42%. The collective share of OPEC nations has risen to 49%, from 45%.
This strategic recalibration in India’s oil imports demonstrates a commitment to energy security and geopolitical alignment. The United States is positioned as a key beneficiary, enhancing its role in a market that has historically been influenced by Russian supply.