India
HIGHSituation Overview
India imports 64% of its crude through Hormuz, though Russian discounted oil has partially offset the disruption. India has been the most aggressive nation in substituting Gulf crude with Russian Urals, with Russian oil now accounting for nearly 40% of total imports. However, the remaining Gulf dependency, combined with surging LNG costs and the weakening rupee, creates significant economic pressure on the world's fifth-largest economy.
Economic Impact
$260B annual impact from the Hormuz crisis. Indian refiners have maximized Russian crude processing, but the quality mismatch (Urals are heavier and more sour than Gulf grades) reduces refinery efficiency. The government's fuel subsidy bill has ballooned to $18B per quarter, straining the fiscal deficit. The Reserve Bank of India has deployed $70B in foreign exchange reserves to defend the rupee.
Key Facts
- 64% crude via Hormuz
- Russian oil imports up 40%
- Refinery utilization at 72%
- $18B quarterly fuel subsidies
- Rupee under severe pressure
- FX reserves deployed for defense