India’s Import Dependence Rises Despite Record Renewable Growth

India’s Import Dependence Rises Despite Record Renewable Growth

April 6, 2026

India’s energy landscape is currently defined by a stark paradox. While the country is making world-leading strides in renewable energy capacity, a recent data analysis by Factly reveals that its structural dependence on imported fossil fuels is actually deepening. The report highlights a “two-track” energy story: a genuine, rapid transition to renewables that is unfortunately being outpaced by a growing domestic hunger for oil and gas—commodities that India is finding harder to produce within its own borders.

The numbers tell a sobering story of declining domestic reserves. Over the last decade, India’s crude oil production fell by over 22%, dropping to 28.7 million tonnes in 2024-25. Consequently, imports now account for a staggering 89.4% of the total crude supply. Natural gas follows a similar trend; despite a national push to increase gas in the energy mix, imports of Liquefied Natural Gas (LNG) have surged by 67%, now making up more than half of the country’s total gas availability. This rising reliance on global markets leaves India increasingly exposed to price volatility and geopolitical instability, particularly in sensitive regions like the Strait of Hormuz.

However, the report also notes a “bright spot” in domestic solid fuels and clean electricity. India’s coal production crossed the 1 billion tonne mark for the first time in 2024-25, helping to buffer some of the import pressure. More significantly, electricity generation from non-thermal sources—including solar, wind, and large hydro—has doubled over the last decade.

The core challenge remains one of substitution. While clean electricity is scaling fast, it currently accounts for only about one-fourth of total generation. To truly break the cycle of import dependence, the growth in renewables must not only meet new demand but begin aggressively displacing the oil and gas used in transport and heavy industry—a transition that remains the defining task for the next decade of India’s energy policy.