India spent $12,000 more on crude oil imports in the first half of FY25 than it did in the same period of FY24 ($63.7 billion against $71.3 billion). Imports of crude oil increased by 4% to 120.5 million tonnes between April and September of this year compared to 115.9 million tonnes during the same time previous year.
The import bill for crude oil into India decreased by 3% in September, despite a 6.3% increase in import volumes to 18.6 million tonnes as compared to September 2023 statistics.
According to data, the amount of crude oil produced by upstream firms from April to September was 14.4 million tonnes, which was less than the 14.7 million tonnes produced in the same time last fiscal year. The production in September decreased somewhat as well, from 2.4 million tonnes to 2.3 million tonnes in the prior year.
Crude oil output has been essentially static over the past ten years, despite government efforts to enhance production and decrease reliance on imports, which has increased reliance on imports. The government recently submitted a measure to alter the Oilfields (Regulation and Development) Act, 1948 in Parliament in an attempt to boost the oil industry. The definition of mineral oils is to be expanded by the proposed modifications to include naturally occurring hydrocarbons such oil shale, shale gas, and coal bed methane, among others. The goal of these changes is to get more industry participants involved.
India is becoming more and more dependent on imports at a time when geopolitical tensions are rising, especially in the Middle East. India has increased its efforts to import more crude oil from Brazil in response. The Union Cabinet decided to invest $1.6 billion in developing a Brazilian oil block in July 2022. This was a calculated strategic decision meant to secure equity oil abroad and lessen reliance on foreign suppliers.