India’s crude oil imports have largely recovered to pre-conflict levels, driven by refiners successfully diversifying their supply chains away from West Asia.
According to HSBC, Indian processors have increased purchases from Russia and the United States to offset months of disruptions in the Gulf region.
The shift underscores the resilience of India’s refining sector amid ongoing geopolitical volatility in the Middle East.
By reducing reliance on traditional West Asian sources, Indian refiners have mitigated immediate supply risks, even as broader regional tensions persist.
This diversification strategy comes as oil prices have reversed earlier declines, fueled by renewed Middle East tensions.
The spike in crude costs threatens to undermine India’s recent stock market rebound, raising concerns over inflationary pressures and downstream supply constraints.