India's dependence on imports to meet its oil needs is expected to touch 90 per cent in next two decades and the country needs to diversify its energy basket through use of alternative fuels, an India Tech-PwC report has said. At present, India imports 79 per cent of its oil needs, and spent $138.3 billion on the same in 2014-15 fiscal. “Given the current trend in domestic oil production, dependence on imports is expected to reach 90 per cent in the next two decades. A higher percentage of GDP will need to be spent on oil imports, further increasing India's vulnerability to price shocks,” the report said.
Stating that the economy can't be fully insulated against external shocks, the impact of such shocks can be limited if dependence on oil imports is reduced.