India is actively working to lower the one‑third share of crude oil and petroleum products in its imports by expanding trade with BRICS nations. The shift aims to strengthen economic resilience and address manufacturing bottlenecks.

  • Crude oil and petroleum account for roughly 33% of India’s total imports.
  • Trade with BRICS partners has surged by about 45% over the past five years.
  • Manufacturing challenges remain a critical hurdle for India.

India has officially announced a strategic push to diversify its trade portfolio with the BRICS bloc. Reducing reliance on crude oil and petroleum imports is seen as essential to bolstering economic security.

Why Import Structure Needs Change

According to the Ministry of Finance, crude oil and petroleum products made up approximately 33% of India’s total imports in FY 2023‑24. This heavy dependence amplifies vulnerability to global price swings.

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Historical Growth of India‑BRICS Trade

Over the last five years, bilateral trade between India and BRICS nations has risen by 45%, climbing from roughly $70 billion in 2018 to $102 billion in 2023. The growth is driven largely by goods‑to‑goods transactions and expanding services.

Manufacturing Bottlenecks

Key challenges—technology gaps, supply‑chain rigidity, and insufficient investment—continue to constrain India’s manufacturing sector. The government has revived the “Make in India” initiative to spur domestic production and reduce import dependence.

Policy Measures and New Initiatives

New currency‑swap agreements, prospective free‑trade accords, and a joint investment platform with BRICS members have been announced. These steps are expected to cut energy‑intensive imports while opening avenues for services and high‑value manufacturing.

Potential Impact on Trade Deficit

Analysts estimate that a 10% reduction in oil imports could improve India’s trade balance by $15‑20 billion annually over the next five years, easing the widening deficit.

Why This Matters

BozokMedia analysis shows that diversifying away from energy‑heavy imports not only shields India from volatile global oil prices but also aligns with its long‑term goal of becoming a manufacturing hub for the Global South.

"India must upgrade its manufacturing infrastructure to reap the full benefits of expanded BRICS trade."
Did You Know?: In 2022, China accounted for 28% of India‑BRICS trade, up from 15% in 2015, marking a near‑doubling of its share.

Frequently Asked Questions

  • Why is diversifying trade with BRICS crucial for India?
  • What specific steps is India taking to reduce crude oil import dependence?