Operation Sindoor Impact: India Faces Complex Trade Ties with Azerbaijan Over Crude Oil

India's strained ties with Azerbaijan following ‘Operation Sindoor’ have impacted trade and tourism. However, the reality of India’s energy dependence on Azerbaijani crude oil complicates the situation, as per news reports. While Indian traders and citizens are increasingly avoiding Azerbaijan, the energy and export relationships between the two countries remain significant and difficult to sever immediately. 

Energy Dependence Makes Trade Complex 

Azerbaijan is a critical part of India’s diversified energy sourcing strategy. Crude oil accounts for 98% of Azerbaijani exports to India, making any abrupt trade suspension a challenge. India remains the third-largest buyer of Azerbaijani crude oil. 

• In 2023, India imported $1.227 billion worth of crude oil from Azerbaijan.
• In 2024, imports dropped to $733.09 million, according to UN Comtrade data. 

Despite the decline, Azerbaijan continues to be an important supplier. During the India Energy Week, Azerbaijan’s SOCAR signed MoUs with Indian firms like ONGC and MRPL to strengthen energy cooperation. ONGC Videsh has also invested over $1.2 billion in Azerbaijan’s oil and gas infrastructure, including the ACG oil fields and BTC pipeline. 

Indian Exports to Azerbaijan Remain Modest 

While crude oil dominates imports, Indian exports to Azerbaijan are relatively minor in scale. 

• India’s exports to Azerbaijan totaled $86.07 million in April–Feb 2024–25, slightly down from $89.67 million in 2023–24.
• Azerbaijan accounts for just 0.02% of India’s total exports. 

Key Indian exports include: 

• Rice: $34.4 million (80.8% of Azerbaijan’s rice imports)
• Smartphones: $24.7 million (16.2% of Azerbaijan’s smartphone imports)
• Aluminium oxides: $20.29 million (38.6% of imports)
• Pharmaceuticals: $27.7 million, including $19.6 million in drug imports 

Also Read:Indian Government Revokes Security Clearance of Turkish Firm Celebi Airport Services Over National Security Concerns. 

Conclusion 

While Indian traders and citizens express strong support for the snub of Azerbaijan over geopolitical issues, critical energy ties and trade interdependence limit the practicality of a complete suspension. 

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