New Delhi: The government will take steps to protect India’s supply chains by protecting exports and ensuring uninterrupted imports of essential commodities such as power, fertilizers and edible oils from all available sources – including Russia – so that domestic consumers do not face shortages, people familiar with the matter said.
India’s weakness stems from its heavy dependence on the Middle East. About 55% of the country’s energy imports come from the region, which is now affected by Iranian strikes. Shipping routes have also been disrupted, with the Strait of Hormuz effectively closed.
The alternative route through the Red Sea is also considered risky due to Houthi attacks. As a result, refiners are expected to increase their purchases from relatively safer regions, said the officials, who requested anonymity.
If the conflict continues, India may work to diversify its energy imports, whether from crude oil or liquefied natural gas, towards countries such as the United States, Venezuela and Russia. Russia was the largest supplier of crude oil to India until last year due to discounted prices, but purchases declined significantly from January 2026 under pressure from the United States.
Read also | The US-Iran conflict spills over into the Gulf and Indian workers are on the front lines of a broader crisis: what it means for them, and back home
India is the third largest oil consumer in the world after the United States and China, but it produces only a small portion of what it needs. More than 88% of the crude oil it processes is imported.
Officials said refineries will continue to source oil from all appropriate suppliers to ensure stable availability at reasonable prices. The US-Israeli strikes on Iran and Tehran’s response led to a rise in global prices. Benchmark Brent crude opened Monday at $81.57 a barrel, up nearly 12% from Friday’s close of $72.87.
The Petroleum Ministry said in a circular on Monday that it reviewed the supply situation of crude oil, LPG and other petroleum products with senior officials and state-run oil companies. She added: “We are constantly monitoring the developments of the situation, and all necessary steps will be taken to ensure the availability and affordability of major petroleum products in the country.”
The Ministry of Commerce also held an inter-departmental meeting with stakeholders to assess potential trade disruptions. Participants reviewed changes in shipping methods and their effects on time-sensitive exports.
Discussions focused on maintaining predictability in the movement of goods, reducing delays and ensuring smooth documentation and payment processes for exporters and importers. The meeting was chaired by Special Secretary Commerce Ministry Suchendra Misra and Director General Foreign Trade Lav Agarwal.
The conference was attended by representatives of logistics operators and shipping lines, along with officials from the Central Board of Indirect Taxes and Customs, Department of Financial Services, Reserve Bank of India, and Ministries of Petroleum, Ports, Shipping and Waterways. Export promotion bodies were also present.
The government reiterated its priority of maintaining continuity of export and import logistics and mitigating disruptions to trade flows. This approach will remain coordinated and facilitative, he said, with special attention paid to protecting exporters – especially micro, small and medium enterprises – while ensuring that essential imports are not affected.
Stakeholders agreed to maintain real-time coordination to monitor routes, freight capacity and equipment availability. Mechanisms to support time-sensitive sectors such as perishable products and high-value manufactured exports were also discussed. The meeting stressed enhancing port facilities and ensuring the smooth evacuation of goods to avoid congestion.
The government also indicated its readiness to introduce procedural flexibility in export permits during unrest, coordinate with customs authorities regarding clearance, and engage financial institutions to support exporters, in addition to continuing coordination between ministries.
