India is one of the largest consumers of crude oil in the world, but it produces only a small portion of its total energy needs domestically. Because of this, the country depends heavily on imports to meet demand from industries, transportation, and households. Historically, Iran was one of the important suppliers of crude oil to India due to its geographical proximity, competitive pricing, and flexible payment arrangements.
Before 2019, India imported a significant amount of crude oil from Iran. In fact, Iran was among India’s top three oil suppliers at different times. During the financial year 2018–19, India imported roughly 23–24 million tonnes of crude oil from Iran, which accounted for nearly 9–10% of India’s total crude imports. Iranian crude was popular among Indian refineries because it was cost-effective and suitable for refining into petrol, diesel, and other petroleum products.
However, the situation changed dramatically after the United States re-imposed economic sanctions on Iran in 2018. These sanctions targeted Iran’s oil exports and financial system, making it difficult for countries to continue buying Iranian oil. As a result, India gradually reduced its imports and eventually stopped purchasing Iranian crude in May 2019 to avoid international penalties and maintain diplomatic relations with the United States.
Since then, India has imported almost no crude oil from Iran. The country shifted its supply sources to other major exporters such as Russia, Iraq, Saudi Arabia, and the United Arab Emirates. In recent years, Russia has become India’s largest crude oil supplier, especially after offering discounted oil following global geopolitical changes.
Today, Iranian oil accounts for a negligible share of India’s total imports, often less than 0.1%, meaning India effectively does not rely on Iranian crude anymore. However, analysts believe that if international sanctions on Iran are lifted in the future, India may consider resuming imports because Iranian oil is geographically close and economically attractive for Indian refineries.
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