India’s 90% Oil Import Reliance Exposes Energy Vulnerability

The latest findings from the Confederation of Indian Industry and EY underscore a persistent structural weakness in the nation's energy security. As the world’s third-largest crude importer, India is increasingly forced to navigate the fallout from Middle Eastern instability, which has disrupted traditional supply routes through the Strait of Hormuz. To mitigate these risks, the state-owned Oil and Natural Gas Corporation is moving to expand infrastructure, including a new 13-million-barrel storage facility in Mangaluru.

Reliance on Russian barrels has provided a temporary buffer against regional supply crunches, but current strategic reserves remain insufficient, covering only eight days of national demand. Refiners are now diversifying their procurement, turning to West African suppliers to ensure consistent flows. Despite these tactical shifts, the widening gap between soaring domestic demand and stagnant local production keeps the country tethered to global market fluctuations.