India, home to 1.4 billion people, is the world’s third-largest oil consumer. With limited domestic oil production and growing energy demand, India imports around 80% of its crude needs.
Russia, offering oil at steep discounts, has emerged as India’s largest supplier, accounting for 36% of total oil imports in the first half of this year.
Indian officials argue the decision is strictly economic. “We have our hands tied at the back,” said energy expert Amitabh Singh, referencing past U.S. sanctions that prevented India from sourcing oil from Iran and Venezuela.
Can India Switch to Other Oil Suppliers?
Photo Credit :- moneycontrol
Not easily. Global oil supply is tight, and alternatives like OPEC nations have limited capacity. Here’s a comparison of India’s key oil options:
| Source | Availability | Pricing | Political Risks |
|---|---|---|---|
| Russia | High | Discounted | Western sanctions |
| Middle East | Medium | Market rates | Stable, but limited surplus |
| Iran | Blocked | Discounted (past) | Sanctioned by U.S. |
| Venezuela | Blocked | Discounted (past) | Sanctioned by U.S. |
With few alternatives, India’s position is rooted in necessity, not ideology.
Global Impact of India’s Oil Strategy
India’s role in the global oil ecosystem is more significant than it may seem. Much of the Russian crude it imports is refined and exported — legally — to Western nations. In 2023, India exported $86.28 billion in petroleum products, becoming the second-largest exporter globally.
By continuing to buy cheap oil from Russia, India has helped prevent global fuel prices from spiking, a benefit quietly acknowledged even by Western countries.
If India switches suppliers or reduces imports suddenly, global fuel prices — including in the U.S. — could rise, adding to inflationary pressure.
A Complicated Web of Diplomacy
India’s relationship with Russia stretches back to the Cold War. While India was officially non-aligned, it leaned towards the Soviet Union as the U.S. supported Pakistan militarily.
Even today, India is the largest buyer of Russian arms, despite recent defense deals with the U.S., France, and Israel.
Trump and Modi once showcased a strong public friendship, with Trump famously saying in 2019 that India “never had a better friend as President.” But tensions have escalated, especially after Trump claimed credit for mediating in the India-Pakistan conflict — a move that irked New Delhi.
Will Modi Give In?
Unlikely — at least not immediately. Modi’s government views its current strategy as pragmatic and necessary. Officials suggest India will gradually reduce dependency on Russian oil, but doing so “cannot happen overnight.”
India is also pointing out what it sees as Western hypocrisy, noting that the U.S. and Europe continue to trade with Russia in chemicals, fertilizers, and other sectors.
Conclusion
India’s refusal to halt Russian oil imports is not just an economic calculation — it’s a reflection of its sovereign priorities in a complex global landscape. As Trump turns up the pressure, Modi appears determined to hold his ground.
For now, India’s Russian oil imports remain a symbol of its broader strategy: protect national interests, maintain global ties, and resist external coercion.