India Scales Back Energy Import Dependence Amid Ongoing Crude Oil Reliance

India's reliance on imported primary energy has decreased modestly to around 42% in FY25 from 47% in FY17, according to a joint report by the Confederation of Indian Industry (CII) and EY. However, crude oil imports continue to meet nearly 90% of the country's domestic demand.

The report notes that higher domestic coal production has driven the improvement in overall import dependence, but natural gas import reliance has increased to around 50% as consumption outpaced domestic production. In contrast, coal import dependence has declined to around 18%.

India's energy transition is reshaping its energy landscape, with electricity playing a larger role in final energy consumption and renewable energy capacity expanding rapidly. However, the report emphasizes that strengthening energy security would depend on adding clean energy capacity as well as reducing structural import dependence across the energy value chain.