India is actively broadening its crude oil and coking coal import base to strengthen energy security and shield against price volatility, Commerce and Industry Minister Piyush Goyal announced recently.
Goyal made the remarks amid ongoing discussions on India-US trade ties, stressing that the country wants to move away from over-reliance on just two or three supplier geographies. He specifically highlighted interest in importing more high-quality coking coal and crude from the United States as part of this strategy.
“India is keen to diversify its crude oil and coking coal sources,” Goyal stated, adding that such diversification aligns with the nation’s strategic interests by reducing exposure to supply disruptions and geopolitical risks.
Energy Security as Top Priority
The push comes as India, the world’s third-largest oil consumer, imports over 85% of its crude needs from more than 40 countries. Officials note that heavy dependence on a few suppliers leaves the economy vulnerable to market shocks, as seen in past conflicts and sanctions.
Recent import data shows a subtle shift: inflows from Russia have stabilized after peaking, while volumes from the US, UAE, Nigeria, Libya, and Brazil have risen. Middle Eastern producers like Saudi Arabia and Iraq remain dominant but face growing competition from diversified Atlantic Basin sources.
Goyal clarified that while trade agreements like the new India-US deal facilitate smoother access, actual purchases are driven by commercial decisions of Indian refiners.
Balancing Ties with Russia and the West
India continues to buy discounted Russian crude where viable, but buyers—not policy—determine volumes, Goyal emphasized. This approach allows strategic autonomy, balancing relations with Moscow amid US sanctions pressure while courting American energy exports.
Analysts predict this multi-supplier model will persist into 2026, supported by domestic expansions like new refineries and higher ethanol blending to curb overall import reliance.
The diversification aligns with India’s broader economic goals under the National Energy Policy, aiming for resilient supply chains amid global uncertainties.
