India Base Oil Market Size, Share, By Product (Group I, Group II, Group III, Group IV, And Group V), By Application (Automotive Oils, Process Oils, Hydraulic Oils, Metalworking Fluids, Industrial Oils, And Others), And India Base Oil Market Insights, Industry Trend, Forecasts to 2035

India Base Oil Market Insights Forecasts to 2035

• India Base Oil Market Size 2024: 4.21 Million Tons
• India Base Oil Market Size 2035: 6.92 Million Tons
• India Base Oil Market CAGR 2024: 4.62%
• India Base Oil Market Segments: Product and Application

The India Base Oil Market Size includes the manufacture, transportation and sale of the base oils used to produce lubricants and other types of industrial fluids, which derive from crude oil or manufactured through synthetic processes. These base oils can be used to produce engine oils, hydraulic oils, gear oils, greases and metalworking fluids, etc. Base oils work by reducing friction, wear and heat between moving mechanical elements in automobiles, industrial equipment, marine vessels, machinery and other applications.

The base oil in India are backed by government support, including the Make in India and Atmanirbhar Bharat, which encourage domestic production of key industrial inputs and reduce reliance on imports. Large scale of infrastructure investment done under the National Infrastructure Pipeline (NIP), estimated at over USD 1.3 trillion, which fuels demand for heavy machinery, commercial vehicles, and industrial equipment all of which require base oil-derived lubricants for operation and maintenance.

As technology advances, Indian base oil providers are now using advanced hydrocracking and gas-to-liquid technology with increased density, lower oxidation resistance, and better viscosity control. All these properties are necessary for producing high performance and synthetic lubricants. Additionally, digital process controls and analytical tools in refining businesses improves yield and decrease energy consumption while providing specialized base stocks for premium automotive and industrial uses.

Market Dynamics of the India Base Oil Market:

The India Base Oil Market Size is driven by the rapid expansion of the automotive sector, rising disposable incomes, urbanization boost vehicle ownership expansion, higher consumption of engine oils and lubricants formulated with base oils, rapid industrial growth in manufacturing, construction, and infrastructure development, increasing demand for industrial lubricants and hydraulic fluids, strong shift toward more stringent emission norms and fuel efficiency standards, enhanced infrastructure spending and increasingly sophisticated manufacturing processes further propel the market growth.

The India Base Oil Market Size is restrained by the volatility in crude oil prices, fluctuations in global crude costs, vulnerability to international supply disruptions, foreign exchange risks, stringent environmental regulations, limited technologies and compliance infrastructure, and increased logistical costs challenges.

The future of India Base Oil Market Size is bright and promising, with versatile opportunities emerging from the shift towards higher- performance, synthetic base oils for premium automotive and industrial applications. In addition, the growth of domestic refineries and an emphasis on strategic investments into re-refining technology create possibilities for replacement of imports and increased local economic development through the generation of jobs and tax revenues. Additionally, the increasing demand for maintenance products within the aftermarket and continued growth of heavy-duty vehicle fleets results in the continued use of lubricants made from base oils, which encourages both new entrants as well as established companies to innovate and expand their ability to serve customers.

Market Segmentation

The India Base Oil Market share is classified into product and application.

By Product:

The India Base Oil Market Size is divided by product into group I, group II, group III, group IV, and group V. Among these, the group II segment held the largest revenue market share in 2024 and is predicted to grow at a remarkable CAGR during the forecast period. Cost effectiveness, widespread availability, widely used across diverse automotive and industrial applications, and well established existing refining capacity infrastructure for base oil in India all contribute to the group II segment's largest share and higher spending on base oil when compared to other product.

By Application:

The India Base Oil Market Size is divided by application into automotive oils, process oils, hydraulic oils, metalworking fluids, industrial oils, and others. Among these, the automotive oils segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The automotive oils segment dominates because of rapid growth of the Indian automotive sector, provides higher engine protection, offers large vehicle fleet, and increasing demand for high-performance lubricants to meet strict emission and fuel efficiency standards.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the India Base Oil Market Size, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in India Base Oil Market:

• Indian Oil Corporation Ltd.
• Bharat Petroleum Corporation Ltd.
• Hindustan Petroleum Corporation Ltd.
• Reliance Industries Ltd.
• Castrol India Limited
• Oil and Natural Gas Corporation
• Gulf Oil Lubricants India Ltd.
• Shell India
• Savita Oil Technologies Ltd.
• Chennai Petroleum Corporation Ltd.
• TotalEnergies Marketing India Pvt. Ltd.
• ExxonMobil Lubricants Pvt. Ltd.
• Veedol Corporation Ltd.
• Idemitsu Lube India Pvt Ltd.
• Apar Industries Ltd.
• Others

Recent Developments in India Base Oil Market:

In January 2026, Gulf Oil Lubricants India launched Syntrac, a new range of fully synthetic motorcycle engine oils formulated using ester base oils. These products are API-SP-compliant and cater to high performance, two wheeler segments.

In October 2025, Shell Lubricants India introduced new advanced lubricants featuring PurePlus Technology, which converts natural gas into 99.5% pure base oil. New products include Shell Spirax S4 GX 75W90 (synthetic gear oil) and Shell Advance AX6 5W30 (for scooters).

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the India, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the India Base Oil Market Size based on the below-mentioned segments:

India Base Oil Market, By Product

• Group I
• Group II
• Group III
• Group IV
• Group V

India Base Oil Market, By Application

• Automotive Oils
• Process Oils
• Hydraulic Oils
• Metalworking Oils
• Others