Why in News
The ongoing Russia-Ukraine war (energy corridor disruption), West Asia tensions (Strait of Hormuz risk), and India-Pakistan military standoff (Operation Sindoor) have all simultaneously highlighted India’s acute energy security vulnerabilities. India imports ~87–89% of crude oil — disruption to even one major corridor would trigger price spikes, inflation, and growth slowdown. This editorial examines India’s energy security architecture and its adequacy.
India’s Energy Import Profile
Oil Import Dependency
| Parameter | Data |
|---|---|
| Crude oil import dependency | ~87–89% of total consumption (FY24: 87.7%; FY25: ~89%) |
| Total oil imports (FY25) | ~$123 billion |
| Top suppliers | Russia (~35%), Iraq (~25%), Saudi Arabia (~16%) |
| Domestic production (FY25) | ~29 million tonnes (ONGC + OIL) |
| Consumption (FY25) | ~240 million tonnes |
Natural Gas
| Parameter | Data |
|---|---|
| LNG import dependency | ~50% of gas consumption |
| India’s gas share in energy mix | 6% (global average: 23%) |
| LNG suppliers | Qatar (largest), Australia, USA |
Coal
- India is the world’s 2nd largest coal importer (behind China)
- Imports ~240 million tonnes/year despite being 4th largest producer
- Coking coal for steel: heavily import-dependent
Strategic Petroleum Reserve (SPR)
| Parameter | Detail |
|---|---|
| Current capacity | ~5.33 million metric tonnes (MMT) |
| Locations | Visakhapatnam (AP), Mangaluru (Karnataka), Padur (Karnataka) |
| Days of cover | ~9.5 days of net oil imports |
| IEA standard | 90 days |
| Gap | India covers only ~10% of IEA recommended minimum |
| Phase II expansion | Chandikhole (Odisha) + Padur expansion — approved but delayed |
| Managed by | Indian Strategic Petroleum Reserves Limited (ISPRL) — a wholly owned subsidiary of OIDB (Oil Industry Development Board), MoPNG |
Critical gap: India’s SPR provides only ~9–10 days cover vs. IEA’s 90-day standard. A Strait of Hormuz disruption lasting >2 weeks would critically impact India.
Geopolitical Risk Corridors
Strait of Hormuz
- ~20% of global oil trade passes through this 33-km-wide strait
- Iran has threatened closure multiple times (US-Iran tensions, Israel-Iran)
- India imports ~60–65% of crude from Gulf — all transiting Hormuz
- No bypass route of comparable capacity (Oman-Abu Dhabi pipeline limited)
Russia Discount — A Double-Edged Sword
- After 2022 sanctions, India bought discounted Russian Urals crude heavily
- Russia’s share rose from <2% (2021) to ~35% (2024) of India’s oil imports
- Risk: Secondary sanctions threat from USA; routing through UAE payment systems vulnerable
- Benefit: Saved India ~$14–20 billion vs. market price in 2022–24
West Asia Risk
- Israel-Hamas conflict → Houthi attacks on Red Sea shipping → freight rates +300%
- Bulk of India’s West Asia LNG (Qatar pipeline) and oil passes through this region
India’s Energy Diversification Strategy
Geographic Diversification
| Region | India’s Strategy |
|---|---|
| West Africa | ONGC Videsh equity stakes (Nigeria, Mozambique) |
| Latin America | Venezuela (curtailed post-sanctions), Guyana (new) |
| Russia | Discounted crude; Rosneft stake (Essar deal) |
| Central Asia | INSTC (Iran-Russia corridor); Chabahar port |
| USA | US LNG long-term contracts (10–20 year deals) |
Renewable Transition as Energy Security
- Solar + Wind: Reduces oil/gas demand in power sector
- Target: 500 GW non-fossil capacity by 2030
- Current: ~220 GW renewable installed (May 2026)
- EV push: 30% EV penetration by 2030 → reduce transport oil demand
- Green Hydrogen: National Green Hydrogen Mission — ₹19,744 crore outlay; 5 MMT production target by 2030
Gas Infrastructure
- PM Urja Ganga pipeline; city gas distribution expansion
- ONGC’s KG-DWN-98/2 block: India’s largest deep-water gas discovery — production ramping up
- Target: Raise gas share in energy mix from 6% → 15% by 2030
The Climate-Security Tension
| Dimension | Conflict |
|---|---|
| Short-term energy security | Requires maintaining coal + gas as backup |
| Long-term climate targets | Requires phase-down of fossils |
| Russia oil discounts | Cheaper energy → GDP growth → more emissions |
| SPR expansion | Fossil fuel lock-in vs. stranded asset risk |
India’s position at COP: CBDR-RC (Common But Differentiated Responsibilities); peak emissions year not yet committed; Net Zero by 2070.
UPSC Relevance
| Paper | Angle |
|---|---|
| GS3 — Economy | Energy security, oil imports, strategic petroleum reserves, LNG, renewable transition |
| GS2 — IR | Strait of Hormuz, INSTC, Russia sanctions impact on India, energy diplomacy |
| GS3 — Environment | Climate-security tension, renewable targets, Green Hydrogen Mission |
Mains Keywords: Energy security, crude oil import dependency, Strategic Petroleum Reserve, ISPRL, Strait of Hormuz, Russian oil discount, Houthi Red Sea attacks, INSTC, Green Hydrogen Mission, 500 GW renewable target, CBDR-RC, KG-DWN-98/2, energy diversification
Prelims Facts Corner
| Item | Fact |
|---|---|
| India crude oil import dependency | ~87–89% of consumption (FY24: 87.7%; FY25: ~89%) |
| India LNG import dependency | ~50% of gas consumption |
| India gas share in energy mix | ~6% (global average: 23%) |
| SPR current capacity | ~5.33 MMT (locations: Vizag, Mangaluru, Padur) |
| SPR days cover | ~9.5 days (IEA standard: 90 days) |
| ISPRL | Indian Strategic Petroleum Reserves Limited — wholly owned subsidiary of OIDB (Oil Industry Development Board), MoPNG |
| Strait of Hormuz global oil share | ~20% of global oil trade |
| Russia’s share of India oil imports (2024) | ~35% (up from <2% in 2021) |
| National Green Hydrogen Mission outlay | ₹19,744 crore |
| Green H₂ production target | 5 MMT by 2030 |
| Renewable installed capacity (May 2026) | ~220 GW |
| 2030 non-fossil target | 500 GW |
| India Net Zero target year | 2070 |
