Context: Official data indicates a structural decline in India’s oil imports from Russia in FY 2025-26, signaling a strategic realignment of the energy import basket.
Decline in Russian Share:
- Russia’s share in India’s oil imports peaked at 35.1% in FY 2024-25.
- In the first half of FY 2025-26 (April-Sept), this share declined to 32.3%.
- Imports fell by 29% in value and 17% in volume in September 2025 compared to the previous year.
Re-emergence of Traditional Partners:
- USA: Share increased to 8% (up from 4.6%).
- UAE: Share increased to 11.7% (up from 9.7%).
Policy Driver:
- The shift is attributed to Strategic Diversification to prevent over-dependence on a single supplier.
- While the U.S. imposed 50% tariffs (effective August 2025), data shows the reduction trend began prior to the tariff implementation.
