Does India Import Oil From China? Unveiling the Facts Behind India’s Oil Trade With China

India has increased its crude oil imports from Russia. Find out what role China plays in India’s oil trade.

With increasing tensions around Iran, global energy trade is shifting rapidly. Recently, India has diverted some oil shipments from China to Russia. This leads to the question: Does India import oil from China?

India’s Oil Needs and China’s Role

To understand this, it’s essential to note that China is the world’s largest crude oil importer. It does not act as an oil supplier to countries like India. Instead, India fulfills its crude oil demand through major oil-producing countries, not China. When it comes to fuels like petrol and diesel, China does not directly participate in India’s supply chain.

Primary Oil Imports From China

India primarily imports soybean oil from China. It is extensively used in cooking and food processing. In 2025, India imported approximately 150,000 metric tons of soybean oil from China. This deal primarily occurred due to the practical benefits of discounted prices and shorter shipping periods. It shows that such imports are driven more by market conditions than long-term reliance.

Refined Petroleum Product Imports

Apart from cooking oil, India imports certain refined petroleum products from China. These include lubricants, base oil, and oil derived from bituminous minerals. These products are necessary for industrial and mechanical applications, not for daily fuel consumption like petrol. These imports remain relatively small in value, with India importing petroleum-related products worth around $55 to $60 million annually from China.

How Much Oil Does India Import from China Each Year?

There is no fixed amount of oil imported from China, as it fluctuates based on market conditions. In 2025, the import of 150,000 tons of soybean oil was a significant one-time deal, rather than a regular pattern. Similarly, the import of petroleum products varies annually.

Why Doesn’t India Rely on China for Oil?

Several strong economic and political reasons contribute to this. China itself depends on oil imports and cannot act as a stable supplier. Furthermore, India prefers to import crude oil directly from oil-producing countries rather than relying on China.