India's Imports: Four Commodities Targeted by the Government Account for Over $240 Billion

India's Import Bill Soars to $240.7 Billion in FY26

India's import bill for the fiscal year 2025-26 has reached a staggering $240.7 billion, with the country's reliance on four key commodity groups - crude oil, gold, vegetable oils, and fertilisers - posing significant pressure on its foreign exchange reserves.

According to a Moneycontrol analysis of trade data, these four commodity groups account for 31.1% of India's total import bill of $775 billion. The largest component of this import bill is crude petroleum, with imports worth $134.7 billion, followed by gold imports which surged to a record $72 billion.

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The prime minister, Narendra Modi, has urged citizens to use these commodity groups more judiciously as part of a broader push to reduce pressure on the country's foreign exchange reserves and strengthen economic resilience. In a recent appeal, he called on citizens to reduce dependence on petrol and diesel by adopting electric vehicles, using public transport, car-pooling, and shifting freight to railways.

Farmers were urged to replace diesel-powered pumps with solar alternatives and cut chemical fertiliser use by 50%. Households were also encouraged to moderate edible oil consumption and defer non-essential gold purchases for a year. The remarks come amid the West Asia crisis, which has sharply increased import costs.

India's crude basket averaged $114.48 per barrel in April and $105.4 per barrel in May, compared with an average of $70.99 per barrel in FY26. Even modest behavioural changes could have significant implications for India's external accounts, given that these four commodities account for nearly one in every three dollars spent on imports.

The import bill balloons further if one includes organic chemicals and raw materials used in fertiliser production, many of which also depend on transit through the Strait of Hormuz. Gold and fertiliser imports have been the fastest-growing components of this basket, with gold imports rising by 24% and fertiliser imports jumping 77% in FY26.

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