India's Oil Security at Risk Amid Global Supply Challenges

India's oil security is under scrutiny as global crude supply faces significant disruptions. The rising prices, driven by geopolitical tensions, particularly the conflict in Eastern Europe, have forced countries to rethink their energy strategies.

In recent months, nations reliant on oil imports have experienced unstable prices. India's most significant challenge is its reliance on imported oil, which accounts for approximately 85% of its consumption according to data from the Indian government.

With many global economies grappling with inflated energy costs, India is exploring alternate sources and diversifying its energy portfolio. Experts argue that reducing dependence on specific suppliers could bolster India's oil security.

According to statistics from the International Energy Agency, India is among the top three largest crude oil consumers globally. Nonetheless, the nation has been actively seeking ways to minimise the impact of price volatility through strategic partnerships.

A recent analysis from The Hindu indicated that the Indian economy could withstand a transition away from Russian oil imports without severe fiscal repercussions. As per their report, India has begun diversifying its sources, engaging with suppliers in the Middle East and Africa, which may provide more stable terms of trade.

Additionally, Indian officials are exploring renewable energy investments as a long-term strategy. As Indian Prime Minister Narendra Modi has emphasised, the government is committed to achieving net-zero emissions by 2070, and bolstering renewable energy is a crucial step in this journey.

Industry experts believe that while immediate challenges persist, India's proactive measures to diversify energy imports and invest in renewable sources will play a significant role in strengthening its energy security.