Crude oil remains central to the Indian economy as it makes up for around 25 per cent of its imports in a year, that help to fulfil 80 per cent of the energy requirement. With Iran being the third largest supplier of oil to India in 2018-19, the risks and disadvantages posed by the sanction on import from Iran are manifold.
Of the total $128.7 billion imports of Petroleum, Oil and Lubricants (POL) during the first 11 months of 2018-19, Iran accounted for 9 per cent, according to the CMIE data compiled by CARE Ratings.
Crude oil has various uses in the industrial sector. It is refined into petroleum products that are used for many different purposes. The petroleum products are used to propel vehicles, heat buildings and produce electricity.
