In recent years, India has emerged as a fast-growing economy

  • It is expected that the South Asian nation’s economy will overtake the US economy within the next few years
  • Historically, India’s economic growth was highly dependent on agriculture and related products
  • However, this situation is also changing with the times
  • Sectors such as information technology and fuels are now becoming extremely important for India’s economic growth

Over the past couple of years, India has tried hard to ramp up its export capacity

  • This is because the South Asian country wants to cut down on its trade deficit and strengthen its economy
  • One sector that has the potential to help India in achieving this goal is petroleum products
  • India has already built some of the most important refineries in the world, especially in its Western states
  • Refined petroleum has already become India’s most exported product

Refined Petroleum is India’s top export

Refined Petroleum is India’s top export

During the year 2019, India’s refined fuel exports stood at $44.1 billion, the highest among all exported products

  • This accounted for nearly 14% of all the exports from India
  • The South Asian country is among the top 10 exporters of refined petroleum around the world
  • Although India does not have abundant oil & gas resources of its own, it imports raw fuels from other nations before refining and re-exporting them
  • Most of this refining work is done close to the country’s West coast
  • In fact, India’s refined petroleum products are also used for catering to the domestic demand for fuels

Even though refined petroleum exports hit an 8-year low during 2019, they still continued to be India’s most exported product

  • This fall in exports was mainly due to a heavier maintenance program as well as a high degree of local demand
  • India’s refineries are being upgraded in order to meet the latest Bharat-VI standard fuel mandate
  • It is likely that the exports for petroleum products will be back on track over the next few years

India’s refined petroleum products are exported to several countries in Asia as well as Europe

  • Some of the key importers of refined petroleum from India include Singapore, the UAE, Malaysia, the Netherlands, the US, Nepal, and Israel
  • Nations like Singapore and Nepal are particularly dependent on Indian exports in order to meet their local demand

Another important factor is that the quality of Indian refineries has improved significantly in recent years

  • India’s major refiners have made major investments in upgrading their refineries and improving the overall efficiency
  • Further, Indian refiners are also making use of the latest technologies in order to improve their throughput
  • It is likely that Indian refineries will establish themselves even further in the near future, thereby providing a major boost to refined petroleum exports from the country

To conclude, it is clear that there are several reasons why refined petroleum continues to be India’s top export. This situation is expected to continue over the next few years, as India looks to strengthen its refining capabilities further. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.