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India's Energy Security: 88.5% Import Dependence, 5.33 MMT SPR Capacity, and Lessons from 1973/79 Oil Shocks

EconomyIntl. RelationsInfrastructureHIGH
Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
16 Apr 2026
~2 min
Source: Indian Express
Key Data:Over 88.5%5.33 million tonnes3.37 million tonnes244.5 MMT$500M to $1.3B70% to $5.11/barrel
Bodies:International Energy Agency (IEA)Ministry of Petroleum and Natural Gas (MoPNG)International Monetary Fund (IMF)Organization of Petroleum Exporting Countries (OPEC)
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What This Article Covers

1.India's crude oil import dependence reached over 88.5% in FY26, with 60% of imports sourced from West Asia, creating high energy security vulnerability.

2.The 1973 oil crisis (Arab-Israeli war) caused India's import bill to surge from $500M to $1.3B, while the 1979 crisis (Iranian Revolution) forced India to seek IMF assistance, laying groundwork for economic liberalisation.

3.For exam perspective, focus on India's Strategic Petroleum Reserves (5.33 MMT capacity), the geopolitical significance of the Strait of Hormuz, and the historical linkage between oil shocks and economic policy shifts.

The Big Picture
Prelims · HighMains · High

This article analyzes India's acute vulnerability to global oil shocks, with over 88.5% crude oil import dependence and 60% of imports from West Asia. It draws critical lessons from the 1973 Arab oil embargo and 1979 Iranian Revolution crises, which severely impacted India's economy and balance of payments, shaping its strategic petroleum reserves (SPR) policy.

Exam Lens

Quick Exam Facts From News

Crude Oil Import Dependence (FY26)Over 88.5%
SPR Total Capacity5.33 million metric tonnes
Current SPR Filling3.37 MMT (two-thirds)
India's Crude Imports (2024-25)244.5 MMT
Oil Price in 1973 CrisisSurged 70% to $5.11/barrel
India's Import Bill 1973-74$500M to $1.3B

1-Minute Revision

  • ›Crude Oil Import Dependence (FY26): Over 88.5%
  • ›SPR Total Capacity: 5.33 million metric tonnes
  • ›Target this Data: India's crude oil import dependence is over 88.5% (FY26).
  • ›Target this Nodal Body: Ministry of Petroleum and Natural Gas (MoPNG) manages Strategic Petroleum Reserves.
  • ›Target this Legal Point: The 1979 oil crisis led India to approach the International Monetary Fund (IMF).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry is responsible for managing India's Strategic Petroleum Reserves (SPRs) as per the article?

Q2Statement-basedHard

Consider the following statements regarding the historical oil shocks mentioned in the article:

1. The 1973 oil crisis was triggered by the Arab-Israeli war and led to an embargo by Arab members of OPEC.

2. During the 1973 crisis, India's import bill for petroleum rose sharply from about $1.3 billion to $500 million.

3. The 1979 oil crisis, following the Iranian Revolution, compelled India to seek assistance from the International Monetary Fund (IMF).

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what is the total storage capacity of India's Strategic Petroleum Reserves (SPRs)?

Q4Application/ImpactMedium

What was a significant long-term policy implication for India stemming from the 1979 oil crisis, as per the article?

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