India’s Energy Security and Path To Sovereignty

Why in News?

Russia has recently become India’s largest crude oil supplier, contributing nearly 35–40% of total imports in 2024–25, a steep jump from just 2% before the Ukraine conflict. This dependence has renewed concerns about energy vulnerability and diversification.

About Energy

  • Energy is the lifeblood of modern economies. For India, a fast-growing economy with rising demand, the challenge lies in ensuring affordable, reliable, and sustainable energy while reducing strategic vulnerabilities.
  • Over-dependence on any single supplier or technology can expose the economy to external shocks, currency pressures, and geopolitical risks.
  • Hence, energy security today is inseparable from economic stability and national sovereignty.

India’s Energy Dependence – Key Concerns

  • High import dependence – Over 85% of crude oil and 50% of natural gas are imported.
  • Forex outflow – In FY 2023–24, crude oil and natural gas imports alone cost India nearly $170 billion, about 25% of total imports.
  • Geopolitical exposure – Discounted Russian oil provides relief, but over-reliance on one partner creates strategic risk.
  • Fragile supply lines – Events like the Israel–Iran tensions (2025) could threaten 20 million barrels/day of global supply, pushing Brent crude beyond $100/barrel.

Global Lessons in Energy Security

  • 1973 Oil Embargo – Showed dangers of excessive dependence on OPEC; led to strategic reserves and diversification.
  • Fukushima Disaster (2011) – Raised doubts about nuclear energy, but climate concerns are reviving its importance.
  • Texas Freeze (2021) – Highlighted need for infrastructure built for resilience, not just cost-efficiency.
  • Russia–Ukraine War (2022) – Europe’s gas crisis proved that no nation is energy sovereign if single-sourced.
  • Iberian Blackout (2025) – Over-reliance on renewables without backup caused grid collapse, stressing the need for balanced energy mixes.

Present Global Energy Landscape

  • Fossil fuel dominance – Still over 80% of global primary energy.
  • Transport dependence – Over 90% of vehicles run on hydrocarbons.
  • Renewables rising – Solar and wind growing but under 10% share globally.
  • Investment squeeze – Falling oil and gas exploration spending despite high demand makes markets prone to shocks.

Way Forward

  1. Coal Gasification
    • India’s 150+ billion tonnes of coal can be converted into syngas, methanol, hydrogen, and fertilizers.
    • New technologies and carbon capture can overcome the ash challenge.
  1. Biofuels Revolution
    • Ethanol blending has already saved foreign exchange and boosted farmers’ income by ₹92,000 crore.
    • SATAT scheme is promoting compressed biogas plants that also restore soil fertility in North India.
  1. Nuclear Energy
    • Current capacity (8.8 GW) is stagnant.
    • Reviving the thorium roadmap, localising Small Modular Reactors, and securing uranium are critical.
  1. Green Hydrogen
    • India targets 5 MMT by 2030.
    • Needs domestic electrolyser production, catalyst R&D, and safe storage systems for “sovereign hydrogen.”
  1. Pumped Hydro Storage
    • Provides grid stability, complements renewables, and ensures energy resilience.
    • India’s topography is suitable for expanding storage capacity.

Conclusion:

India’s energy pathway must be rooted in realism and sovereignty, not just affordability. Overdependence on any single source or partner is a recipe for vulnerability. The five-pillar approach — coal gasification, biofuels, nuclear, hydrogen, and pumped hydro — offers India a resilient backbone. In a turbulent global energy market, diversification and self-reliance are the true currencies of national strength.

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