India's crude oil production sees significant growth, foreign dependence down by three percent

KOCHI: India is all set to reduce foreign dependence by significantly increasing domestic production of crude oil. According to a report by the Petroleum Planning and Analysis Cell, monthly crude oil production in the country rose by 2.2 percent to 2.5 lakh metric tonnes. Oil and Natural Gas Corporation (ONGC), Oil India and Reliance Industries have seen the best growth in crude oil production.

With this, India's total crude import liability has decreased by more than three percent, according to central government figures. Crude imports fell 2.5 percent in the six months from April to September. India's import bill for crude and natural gas was $9.8 billion last month. During the same period last year, India spent $15.8 billion on crude and natural gas imports. Meanwhile, India exported $4.1 billion worth of crude oil in July. Crude oil prices in the international market fell to an average of $79 per barrel.

Analysts said the strong rise in domestic crude oil production was part of the central government's move to reduce fuel import costs as the dollar strengthened unusually against the world's major currencies amid heightened global uncertainty. It is estimated that India's trade deficit will improve due to increase in domestic production along with increased purchase of crude oil at a good price concession from Russia.