Archive · 27 Jul 2026
India's crude import dependence hits record 88.7%
India's dependence on imported crude oil has reached a record high of 88.7% in 2025-26.
This is because the country's own oil production has been decreasing over the past five years.
The government has been trying to fix this by making new rules to encourage more oil exploration and production.
However, there are still challenges like old oil fields and difficult geological conditions that make it hard to increase production.
Despite these issues, state-run companies like ONGC and Oil India Ltd have managed to keep their production levels stable.
India's crude import dependence reached 88.7% in 2025-26.
Domestic crude oil production declined from 29.7 MMT to 28.0 MMT over five years.
Natural gas production showed a mixed trend, growing from 33,131 MMSCM to 34,326 MMSCM.
ONGC maintained average annual production of 19.6 MMT, while OIL increased production to 3.44 MMT.
The government introduced reforms to boost domestic production and reduce import dependence.
- Who
- India
- What
- Record high crude import dependence
- When
- 2025-26
- Where
- India
- Why
- Decline in domestic crude production and ageing oil fields
Government's Efforts
Challenges in Domestic Production
Policy Reforms
Government's Efforts
The government has introduced several reforms to encourage exploration and production, including the Oilfields (Regulation and Development) Amendment Act and a transition to a revenue-sharing regime.
Challenges in Domestic Production
Despite these reforms, domestic crude oil production has continued to decline due to factors like ageing fields and geological complexities.
- Import Dependence
- 88.7% in 2025-26
- Domestic Crude Production
- 28.0 MMT in 2025-26
- Natural Gas Production
- 34,326 MMSCM in 2025-26
- ONGC Production
- 19.6 MMT annually
- OIL Production
- 3.44 MMT in 2025-26
- Annual Decline Rate
- 2% since 2014-15