Answer

Introduction

India imports over 85% of its crude oil and over 50% of natural gas, accounting for $170 billion in FY2023-24, making energy security a critical geopolitical and economic concern. Recent Israel-Iran tensions (2025) and Russia’s dominance in crude supply highlight vulnerabilities in supply chains, foreign exchange stability, and strategic autonomy.

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Major Challenges to India’s Energy Sovereignty

• Excessive Dependence on Imports: High reliance on imported crude and gas exposes India to external supply and price shocks.
• Geopolitical Volatility in Supply Regions: Conflict-prone West Asia and Russia-Ukraine tensions threaten supply continuity.
  Eg: Israel-Iran near-conflict in 2025 risked disruption of 20 million barrels/day.
• Concentration of Sources: Over-reliance on single partners increases vulnerability to political shifts.
  Eg: Russia’s share surged from 2% (Before Ukraine Crisis) to 35–40% (2024–25).
• Inadequate Strategic Petroleum Reserves (SPR): Limited reserves reduce resilience during global supply disruptions.
• Uncertain Global Energy Transition: Under investment in fossil exploration alongside rising demand creates supply crunches.
  Eg: Fossil fuels still meet 80% of global energy needs; renewables <10%.

Strategy to Ensure Long-term Energy Security

• Diversification of Energy Sources & Partners: Expand sourcing beyond West Asia and Russia to Africa, the Americas, and Southeast Asia.
  Eg: India reduced West Asia dependency from 60% to below 45% in recent years (S&P Global Commodities at Sea).
• Coal Gasification & Indigenous Energy Unlocking: Leverage 150+ billion tonnes of coal with gasification and carbon capture.
  Eg: Planned syngas and methanol projects to reduce fertilizer import dependence.
• Scaling Biofuels & Rural Empowerment: Expand ethanol blending (E20) and Compressed Biogas (CBG) through SATAT.
  Eg: Ethanol blending saved ₹92,000 crore in crude import bills.
• Accelerate Nuclear Energy & Thorium Roadmap: Develop Small Modular Reactors (SMRs) and secure uranium partnerships.
  Eg: India’s nuclear goal, to expand Nuclear energy to 100 GW by 2047.
• Green Hydrogen Leadership: Invest in electrolyser manufacturing, storage, and catalysts for 5 MMT by 2030.
  Eg: National Green Hydrogen Mission targets self-reliance in hydrogen production.
• Expand Strategic Petroleum Reserves & Currency Hedging: Increase reserves to cover at least 30–45 days of imports, currently at 9-10 days of Reserve.
  Eg: Phase-II SPR expansion planned for Chandikhol & Padur sites.

Conclusion

India’s energy security demands diversifying supply chains, expanding strategic reserves, promoting indigenous sources like biofuels, nuclear, and green hydrogen, and enhancing regional energy corridors to achieve resilient and self-reliant energy autonomy.

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