THE CURRENT SCENARIO OF OIL TRADE IN INDIA AND ITS IMPACT ON THE INDIAN POPULATION

Oil plays a crucial role in the economic development of modern economies, particularly in developing countries like India where energy demand is rising rapidly. India is one of the world’s largest consumers and importers (60%) of crude oil (International Energy Agency, 2023). Due to limited domestic production, the country depends heavily on imports to meet its energy requirements. As a result, fluctuations in global oil prices significantly influence India’s economic stability, inflation levels, trade balance, and the living standards of its population. In recent years, geopolitical tensions, global supply disruptions, and shifts in energy demand have affected the international oil market, leading to price volatility. These fluctuations directly impact the Indian economy and the daily lives of its citizens. Rising oil prices increase transportation costs, energy expenses, and the prices of essential goods, thereby affecting the purchasing power of households. This article examines the current scenario of oil trade in India, analyzes trends in oil imports and consumption, and evaluates the economic and social impacts of oil price fluctuations on the Indian population. The study relies on secondary data sources such as government reports, economic surveys, and international energy statistics. The findings suggest that India’s heavy dependence on imported oil makes its economy vulnerable to global price shocks, which ultimately affect inflation, fiscal stability, and household welfare.