Question:

Choose the correct statements with reference to a rise in the import of petroleum products in Indian imports.
A. Fuel demand has increased.
B. It is used not only as a fuel but also as an industrial raw material.
C. It is linked with industrialisation and urbanisation.
D. Rural India still depends on fuel-wood.
Choose the correct answer from the options given below:

Show Hint

Driving forces behind India's POL import growth:
1. Booming vehicular transport demand (fuel consumption).
2. Expansion of downstream petrochemical and fertilizer industries (raw material).
3. Rising urbanisation and industrial manufacturing.
Updated On: Sep 14, 2026
  • A, B and D only
  • A and D only
  • A, C and D only
  • A, B and C only
Show Solution
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The Correct Option is D

Solution and Explanation

Concept:
Petroleum, Oil, and Lubricants (POL) constitute the single largest component in India's import merchandise basket.
The rapid expansion of the Indian economy over recent decades has triggered a steep increase in domestic hydrocarbon consumption, necessitating larger volumes of crude oil imports from international suppliers.

Step 1: Analyzing Reasons for Rising Petroleum Imports:

Statement A: Rapid growth in the transport sector (automobiles, aviation, and railways) and rising domestic power needs have caused overall fuel demand to surge exponentially. This directly drives petroleum imports. Hence, A is correct.
Statement B: Petroleum is not merely combusted as an energy fuel; it serves as a critical base raw material for petrochemical industries, synthetic fibers, fertilizers, plastics, pharmaceuticals, and synthetic rubber. Thus, B is correct.
Statement C: Rising petroleum imports directly reflect accelerated industrial development and urbanisation, which increase the demand for mobility, consumer goods, and electrical energy. Thus, C is correct.
Statement D: While rural dependence on fuel-wood is a domestic socio-environmental issue, it does not explain the rise in petroleum imports; rather, reliance on traditional biomass reduces commercial petroleum uptake in rural areas. Hence, D is not a causal factor for rising petroleum imports.

Step 2: Conclusion:

Statements A, B, and C provide the valid explanatory reasons for the rise in the import of petroleum products.
Final Answer:
Therefore, the correct answer is A, B and C only.
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