Crude oil imports continue to meet 90% of India's domestic demand: CII-EY report

India's reliance on imported energy has seen a modest reduction, with overall dependence dropping to approximately 42% in the fiscal year 2025 from 47% in fiscal year 2017. This improvement is largely attributed to decreased coal imports, supported by increased domestic production. However, the country's dependence on imported crude oil remains a significant challenge, meeting nearly 90% of its domestic demand.

A joint report by the Confederation of Indian Industry (CII) and EY, titled "India's Energy Security in a Volatile World: Independence, Efficiency and Resilience," highlights this persistent reliance on oil. While the energy mix diversifies, crude oil continues to be India's primary energy import. Natural gas import dependence has risen to around 50% as consumption outpaces domestic production, whereas coal import dependence has fallen to about 18% due to higher domestic output.

The report emphasizes that India's energy transition, marked by a growing role for electricity and rapid expansion of renewable energy capacity, is reshaping the energy landscape. Nevertheless, strengthening energy security requires not only adding clean energy capacity but also reducing structural import dependence across the entire energy value chain.

Despite efforts to diversify crude oil sourcing after the Russia-Ukraine conflict, the Middle East remains central to India's energy security. Historically supplying 61-65% of India's crude oil imports between FY18 and FY22, the region still accounted for about 47-49% in FY25, making it the largest supplier. For liquefied natural gas (LNG), the Middle East supplied 62.9% of India's imports in FY26, indicating continued regional concentration. The report concludes that long-term resilience hinges on balancing clean energy expansion with energy efficiency, domestic production, and broader fuel diversification.