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Economic Survey Confirms India’s FY26 Shift in Oil Sourcing Toward the U.S., Away From Russia

The report presents the change as risk-reducing diversification, with possible U.S. tariff relief if Russian purchases remain depressed.

Overview

  • Official data show increased crude imports from the United States, Brazil, Libya, Egypt, Nigeria and Brunei, alongside declines from Russia, Saudi Arabia, Iraq and Venezuela.
  • The U.S. share rose to 8.1% from 4.6% year over year for April–November FY26, while the UAE climbed to 11.1% from 9.4%, Egypt to 1.4% from 0.3%, Nigeria to 3.3% from 2.2% and Libya to 0.5% from 0.1%.
  • Chief Economic Advisor C. Anantha Nageswaran highlights the shift as part of New Delhi’s push to diversify crude sources to cushion against geopolitical uncertainties.
  • U.S. Treasury Secretary Scott Bessent said the 25% penalty on India could be rolled back given collapsing purchases of Russian oil, following tariff actions that included an August 2025 move to double some rates to 50%.
  • The Survey notes a 2.7% year-on-year rise in crude imports and cites a World Bank outlook for softer global commodity prices in FY27, as the document is tabled ahead of the February 1 Union Budget.