India and Brazil appear set to deepen their crude oil trade partnership as both countries face steep tariffs from US President Donald Trump. Indian refiners are intensifying efforts to diversify crude sources, while Brazil looks for new markets for its growing oil output.
According to S&P Global Commodity Insights (SPGCI), India’s crude imports from Brazil rose sharply in the first half of 2025, with Brazilian shipments growing further in recent months. Brazil has become India’s ninth-largest crude supplier.
The Trump administration recently imposed additional tariffs on India due to its Russian oil imports, which India considers “unjustified and unreasonable.” Brazil faces a similar 50 percent tariff over Trump’s criticism of former President Jair Bolsonaro, a Trump ally. Despite these tariffs, India continues to prioritize energy security and diversify its oil sources, importing crude from around 40 countries while maintaining Russia as its largest supplier.
“Sky-high US tariffs are prompting India and Brazil to explore opportunities to boost oil trade,” SPGCI noted. Both governments have engaged in diplomatic efforts, with Indian Prime Minister Narendra Modi and Petroleum Minister Hardeep Singh Puri discussing enhanced oil cooperation with Brazilian President Luiz Inacio Lula da Silva.
Commercial factors such as freight costs, availability of cargoes, and competition from West Asian suppliers will influence Brazilian crude’s appeal to India. Despite challenges, public and private sector Indian refiners, including Indian Oil Corporation and Reliance Industries, have shown growing interest in Brazilian oil.
As crude inflows from Brazil to India jumped about 75 percent in January-June 2025, both countries are exploring further collaboration, including offshore exploration and production projects, signaling a stronger energy partnership in the coming months.
Nithin Rosh 
Leslie Rajan