India’s Energy Sovereignty and Global Energy Flashpoints

Why in the News?

1. India imports over 85% of its crude oil and more than 50% of its natural gas, creating strategic vulnerabilities in times of geopolitical tensions.
2. Russia has emerged as India’s largest crude oil supplier since 2022, raising concerns of overdependence on a single partner despite short-term cost benefits.
3. The recent Israel-Iran tensions in June 2025 nearly disrupted global oil flows, underlining the fragility of global energy supply chains and the urgency for India to secure its energy future.

Key Highlights

1. India’s Current Import Dependence
   1. Over 85% of crude oil and 50% of natural gas are imported.
   2. In FY 2023-24, energy imports were worth $170 billion, accounting for 25% of total imports, impacting forex, rupee stability, and trade deficit.
2. Russia as the New Swing Factor
   1. Before 2022, Russia contributed only 2% of India’s crude imports; now it supplies 35-40% (2024-25).
   2. Discounted Russian oil lowered the import bill but raised concerns of strategic overreliance.
   3. Shift in sourcing: dependence on West Asia has fallen from 60% to below 45%.
3. Global Flashpoints Reshaping Energy Security
   1. 1973 Arab Oil Embargo: Led to creation of strategic reserves and diversification.
   2. 2011 Fukushima Disaster: Reduced trust in nuclear but revived debate on its role.
   3. 2021 Texas Freeze: Exposed fragility of infrastructure built for cost over resilience.
   4. 2022 Russia-Ukraine War: Showed Europe’s dependence on Russian gas and triggered LNG and coal revival.
   5. 2025 Iberian Peninsula Blackout: Exposed risks of over-reliance on renewables without backup.
4. Energy Realism vs. Energy Transition
   1. Fossil fuels still meet 80% of global primary energy demand.
   2. Transportation runs 90% on hydrocarbons.
   3. Renewables (solar, wind) are under 10% of the global energy mix.
   4. Falling investment in oil and gas exploration has tightened supply, making markets volatile.
5. India’s Five Pillars of Energy Sovereignty
   1. Coal Gasification: Unlock 150 billion tonnes of reserves via syngas, methanol, hydrogen, fertilizers.
   2. Biofuels: E20 blending, ₹92,000 crore farmer transfers, CBG plants under SATAT scheme, soil health restoration.
   3. Nuclear Power: Expand beyond current8 GW, pursue thorium road map, small modular reactors.
   4. Green Hydrogen: 5 MMT annual target by 2030 with localized electrolyser manufacturing & storage.
   5. Pumped Hydro Storage: Provide inertia and balance to renewable-heavy grids.

Implications

1. Economic Stability
   1. Reduced forex outflows by diversifying energy mix.
   2. Strengthened rupee and lower trade deficit in the long run.
2. Strategic Sovereignty
   1. Less dependence on volatile regions like West Asia and Russia.
   2. Enhanced resilience against global energy weaponisation.
3. Geopolitical Leverage
   1. A diversified energy basket enhances India’s bargaining power in global forums.
   2. India can emerge as a balancing force in global energy security dialogues.
4. Sustainable Development
   1. Biofuels improve farmer incomes and soil health.
   2. Clean technologies (nuclear, hydrogen, pumped hydro) enable low-carbon growth while ensuring stability.
5. Preparedness for Future Shocks
   1. Lessons from past flashpoints emphasize the importance of foresight.
   2. India can build strategic reserves, resilient grids, and indigenous technologies before the next crisis hits.

Challenges and Way Forward

Conclusion

India’s energy story is not merely about climate commitments; it is about survival, resilience, and sovereignty. The world’s energy history shows that crises often force change, from the 1973 oil shock to the 2022 Russia-Ukraine war. India now has the opportunity to pivot by foresight rather than force. By investing in its five strategic pillars: coal gasification, biofuels, nuclear, green hydrogen, and pumped hydro, India can build an energy system that is indigenous, diversified, and shock-proof. The age of energy sovereignty has begun, and India must seize it.