Indian crude oil imports over the period 2000-2016 have shown a strong growth rate of almost 7% y-o-y. Crude oil imports from Saudi Arabia over the same period have surged, growing at more than 14% annualized. The Indian transport sector is the key consumer of oil and freight is a crucial component of the transport sector. Any changes to Indian freight energy demand will have significant repercussions on global oil markets and potentially impact Saudi Arabian oil exports. While there is increasing demand and improvements in road-based transport, India is trying to enable mode shift to rail through infrastructural investments like the dedicated freight corridors.
An increase in freight activity across different modes of transport has resulted in an amplified…31st March 2020