India’s Reliance on Imported Oil and Natural Gas Increases in H1 FY25
India’s reliance on imported crude oil and natural gas continues to grow, driven by rising energy demand and stagnant domestic production.
In the first half of the current financial year (H1 FY25), the country’s oil import dependency reached 88.2%, up from 87.6% during the same period last year, according to the latest data from the Petroleum Planning & Analysis Cell (PPAC).
Increased Natural Gas Imports
Natural gas import dependency also saw a significant rise, reaching 51.5% in H1 FY25, up from 46.8% a year ago. This comes despite government efforts to boost domestic energy production and reduce import reliance. However, demand for energy in India has continued to grow, leading to increased imports.
India’s domestic crude oil production fell slightly to 14.4 million tonnes in H1 FY25, while crude oil imports rose to 120.5 million tonnes from 115.9 million tonnes in the same period last year. The country’s oil import bill surged by nearly 12% year-on-year to $71.3 billion during the period, while natural gas imports rose 23%, costing $7.7 billion.
Government’s Push for Cleaner Energy
While the government is pushing for natural gas to occupy a larger share of the country’s energy mix, growing reliance on imports continues to pose challenges. The push for natural gas, seen as a cleaner alternative to oil and coal, is aimed at increasing its share to 15% of India’s energy mix by 2030.
Efforts to increase domestic energy production remain crucial as the country balances growing energy needs with environmental and economic concerns.
