New Delhi: he temporary exemption granted to India and seven other countries from US sanctions on purchase of Iranian oil will end shortly, US secretary of state Michael R. Pompeo announced on Monday. The removal of Iranian oil from India’s energy sourcing basket may have major implications given that India has been a major importer of Iranian oil. India imported 23.5 million tonnes in 2018-19 from Iran. In 2017-18, of the 220.4 million tonnes of crude imported by India, more than 10% was from Iran. Mint explains the challenges ahead for India.
Impact on India
India energy needs are primarily met from imports. India will need to come up with options that offer terms as attractive as those offered by Iran, including 60-day credit, free insurance and shipping.
