Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context
- India’s Russian oil imports declined significantly before the U.S. imposed additional 25% tariffs.
- Government data confirm that the reduction reflects a broader diversification strategy, not a tariff-driven reaction.
Key Trends in Russian Oil Imports
- In September 2025, the first full month after U.S. tariffs, India’s imports from Russia were 29% lower in value and 17% lower in volume compared to September 2024.
- India had already reduced Russian oil import value in eight of the previous ten months relative to 2024 trends.
Strategic Rationale
- Officials confirm India recognised its excessive dependence on Russian oil and initiated corrective action earlier.
- The U.S. tariffs were a consideration, but not the driver of India’s energy choices.
- Indian Ministers reiterated that India’s oil procurement decisions follow national interest, not external pressure.
Changing Import Shares
- Russia’s share in India’s total oil imports fell from 41% (Sept 2024) to 31% (Sept 2025).
- After rising for four consecutive years from 1.6% (2020–21) to 35.1% (2024–25) the trend reversed in 2025–26, declining to 32.3% in April–September.
Diversification of Suppliers
- Shares of the U.S. and UAE in India’s oil imports, which dipped when Russia’s share peaked, have risen again.
- U.S. share increased from 4.6% (2024–25) to 8% (2025–26).
- UAE’s share rose from 9.7% to 11.7% over the same period.