Archive · 12 Aug 2025
India's Energy Imports Remain High, Production Struggles
India imports most of its oil and gas from other countries, spending a lot of money on it.
Even though the government wants India to make its own goods, it still buys a lot of energy from other places.
India is not producing enough oil and gas itself.
To encourage more production, the government is changing some policies, like setting the price of gas from difficult fields.
India also plans to use more clean energy, like solar and wind, to reduce the need for foreign oil.
India's crude oil import dependency exceeds 88%.
The oil import bill rose 6% annually to $137 billion in FY25.
Domestic oil production decreased 2% annually, from 32.2 MT to 28.7 MT in FY25.
Free pricing of natural gas from difficult fields is set for January 2026.
India aims to increase renewable energy capacity to 500 GW by 2030.
- Who
- India's government, energy sector, and consumers.
- What
- India faces high import dependency on oil and gas.
- When
- The trend is ongoing, with data analyzed up to FY25.
- Where
- India, focusing on domestic production and import sources.
- Why
- Due to stagnant domestic output and rising energy demands.
Advocates for Self-Reliance
Supporters of Current Energy Procurement
Import Dependence
Advocates for Self-Reliance
Prioritize reducing import dependency.
Supporters of Current Energy Procurement
Recognize the current reliance on imports.
Production Policies
Advocates for Self-Reliance
Support policies to boost domestic production.
Supporters of Current Energy Procurement
Acknowledge the role of foreign suppliers.
- Crude Oil Import Dependency
- Over 88%
- Oil Import Bill (FY25)
- $137 billion
- Oil Production Decline (FY20-FY25)
- 2% CAGR
- Major Oil Suppliers
- Russia, Iraq, Saudi Arabia, UAE, USA, Kuwait
- LNG Imports (FY25)
- $14.9 billion
- Renewable Energy Target
- 500 GW by 2030