EY report says India imports over 90% of crude oil
India is now importing more than 90% of its crude oil, as of FY26 (2025-26), up from 55% in FY1999 (FY1999 1998-99), according to a new EY report.
The study points out that this heavy reliance puts the economy at risk if global supplies get disrupted.
To help avoid shocks, the report suggests India should build bigger oil reserves and speed up the switch to alternative energy and local oil production.
India's strategic reserves cover 5 days
Right now, India's strategic reserves cover just five days of use, tiny compared to China's huge stockpile.
Meanwhile, domestic oil production has dropped sharply even as demand for gasoline and diesel keeps climbing.
The report also notes that while refining efficiency has grown by about one-third since FY1998 (FY1998 1997-98), helping exports, rising imports are straining India's foreign currency reserves.
EY recommends boosting refining power and investing in alternatives like nuclear energy for better long-term security.