India’s Petroleum Imports Surge by 7.7% in FY25
India’s petroleum imports climbed 7.7% year-on-year in the first seven months of FY25, reaching 147.24 million tonnes, according to recent government data. The increase comes as the country grapples with a decline in domestic crude oil production, which has dropped by 0.9% compared to the previous year.
Rising Energy Demands and Declining Output
From April to October 2024, India’s crude production stood at 18.76 million tonnes, falling short of the target of 19.52 million tonnes. This decline is attributed to challenges in extracting crude from aging wells, particularly in fields operated by ONGC and Oil India. The subdued domestic output has forced greater reliance on imports to meet rising energy demands.
India, the world’s third-largest consumer of oil, imports over 85% of its petroleum needs. With economic activity and energy consumption growing, the country’s dependence on international markets for crude oil continues to expand.
Policy Implications and Future Outlook
The rise in petroleum imports comes despite government efforts to enhance domestic crude production and reduce import dependency. Energy experts stress the need for accelerated investment in exploration and production, as well as the adoption of advanced technologies to boost output.
As the demand for energy in India continues to rise, strategic initiatives, including the development of alternative energy sources and increasing efficiency in oil exploration, will play a critical role in addressing the growing challenges in the petroleum sector.
