The Indian government has reiterated that its oil sourcing strategy is primarily driven by national interest, emphasizing that the nation will not rely on a single country for its oil needs. Foreign Secretary Vikram Misri made these statements during a media briefing, underscoring that actual procurement decisions are made by oil companies, both public and private, based on market conditions, availability, pricing, and risk evaluations.
Response to US Executive Order on Russian Oil
Misri’s comments come shortly after an executive order from US President Donald Trump, which removed a 25% penalty tariff on India, and indicated that India had committed to halting purchases of Russian oil, directly or indirectly.
The foreign secretary clarified that domestic oil companies will continue to make decisions within a complex framework involving financial and logistical considerations. This clarification was necessary in light of ongoing inquiries regarding India’s commitments in discussions related to an interim trade agreement with the United States, as well as accusations from opposition parties that the government was avoiding these questions.
Details on Current Oil Imports
In December, Indian oil imports from Russia fell to a ten-month low of $2.7 billion, reflecting a 15% decrease compared to the previous year. In contrast, imports from Saudi Arabia rose by 60% to $1.8 billion, while imports from the United States increased by 31% to $569 million. Nevertheless, Russia remains the largest supplier, accounting for 31% of India’s imports during the April-December 2025 period, although this marks a decline from nearly 37.5% a year ago. The share of US oil in India’s imports increased from 4.5% to 7.8% during the same timeframe.
Prioritizing Consumer Interests and Energy Security
Vikram Misri emphasized the importance of protecting the interests of Indian consumers, ensuring they receive adequate energy at competitive prices and through dependable supply channels. He further noted that diversifying sources of oil supply is critical for ensuring stability, stating, “The more diversified we are in this area, the more secure we are.” This approach is not only beneficial for India but also aligns with the interests of other nations trying to stabilize oil prices amid global market uncertainties.
India’s Role in Global Energy Markets
Highlighting India’s significance as a major energy consumer, Misri pointed out the country’s role in stabilizing global energy markets. India’s energy policy is shaped by the objectives of ensuring adequate availability, fair pricing, and reliable supply. The nation imports crude oil from numerous countries and remains committed to avoiding dependence on a single source for its energy needs. Misri underscored that India actively seeks to import energy from a diverse range of nations as part of its overall strategy to ensure energy security and market stability.
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