India has been making strategic moves in the global oil market to ensure a steady supply of crude oil while also benefiting its economy. The decision to shift towards buying more oil from
Russia has been a significant part of this strategy.
India's dependence on oil imports has been increasing over the years, with around 80% of its oil needs being met by imports. The majority of these imports came from the Middle East, with Iraq, Saudi Arabia, and Iran being the top suppliers. However, India has been looking for alternatives to diversify its oil sources to avoid being overly reliant on any single supplier.
The shift towards Russia as a primary supplier was a logical move. Russia is one of the world's largest oil producers and is known for its competitive pricing. Additionally, India has enjoyed a strong diplomatic relationship with Russia since the Cold War, making it a trusted ally in the energy sector.
India's investment in refining capacity has also been crucial to its strategy. The country has invested heavily in building new refineries and upgrading existing ones to increase its refining capacity. This has enabled India to refine the crude oil it buys from Russia and sell the refined products to Europe, thereby adding value to the raw material.
India's focus on the oil market is not only aimed at ensuring a steady supply of crude oil but also at boosting its economy. The refining industry is a significant contributor to India's GDP and employment. By investing in refining capacity, India is creating jobs and generating revenue, both of which are critical to its economic growth.
The decision to resist Western pressure and maintain ties with Russia's oil industry was a calculated move by India. By doing so, it has ensured a steady supply of low-cost oil while also expanding its refining capacity and creating economic opportunities. It remains to be seen how this strategy will play out in the long term, but for now, India's oil industry seems to be on a path of growth and stability.
