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    Op-Ed                                                                    APRIL 03, 2026    |  The Indian Eye                    8

                                                            INDIAN INTEREST

                      India needs to rethink and

                 reorganize its energy security

             Energy security is no longer just an economic issue; it is a matter of national stability. A prolonged disruption in
                     oil and gas supplies could slow economic growth, weaken the rupee, and reduce investor confidence

                    SHOBHAN SAXENA

                  he  ongoing  conflict  involving
                  Iran  has  once  again  exposed
            Ta structural weakness in In-
            dia’s economic framework: its deep
            dependence on imported energy.             Maintaining stable and constructive relations with Iran remains crucial, particularly to ensure continued access through
            While policymakers have long ac-
            knowledged  this  vulnerability,  the                                  the Strait of Hormuz (ANI file photo)
            current crisis underscores the urgen-
            cy of moving from acknowledgment   could deepen economic stress and   this route would have immediate and   energy sources. While fossil fuels
            to action.                        potentially trigger social tensions.  severe consequences for India’s en-  will remain central in the near term,
                India imports more than 80 per-   Energy security is no longer just   ergy imports.               reducing dependence on imported
            cent  of  its  crude  oil  requirements,  an economic issue; it is a matter of   Equally important is India’s con-  oil  through  solar,  wind,  and  green
            making it highly  susceptible  to  geo-  national stability. A prolonged dis-  tinued engagement with Russia as an   hydrogen initiatives is essential for
            political disruptions. The tensions in   ruption in oil and gas supplies could   energy  supplier.  Over  the  past  few   long-term resilience. Domestic en-
            West  Asia,  particularly  around  the   slow  economic  growth,  weaken  the   years, discounted Russian crude has   ergy production—both conventional
            Strait of Hormuz—through which    rupee,  and  reduce  investor  confi-  played  a  significant  role  in  cushion-  and renewable—must be scaled up
            nearly a fifth of the world’s oil supply   dence. For a country aspiring to be-  ing India against global price shocks.  with urgency.
            passes—have amplified fears of sup-  come a global manufacturing and   Despite  geopolitical  pressures,  this   The lesson from the current cri-
            ply shocks and price volatility. Even   economic hub, such volatility is a se-  relationship has provided a vital eco-  sis is clear: energy security cannot
            the perception of instability in this   rious risk.                 nomic buffer and should remain part   be reactive. It requires a compre-
            narrow maritime corridor can trigger   It is, therefore, clearly in India’s   of India’s broader energy strategy.  hensive,  forward-looking  strategy
            global  oil  price  spikes,  directly  im-  strategic  interest  for  the  conflict  to   However, reliance on a few key   that integrates diplomacy, economic
            pacting India’s import bill.      de-escalate swiftly. Stability in West   suppliers—whether in West Asia or   planning,  and  technological  innova-
                If  the  conflict  prolongs,  India   Asia ensures not only uninterrupted   elsewhere—cannot be a long-term   tion. India must build a system that
            could face a sustained period of   energy  flows  but  also  the  safety  of   solution. India must aggressively di-  can  absorb  shocks,  adapt  to  chang-
            high energy prices. This would not   millions of Indian expatriates in the   versify its energy import sources. Ex-  ing geopolitical realities, and ensure
            only  strain  government  finances—  region. Diplomatic efforts—both bi-  panding partnerships with countries   uninterrupted energy access for its
            through  higher  subsidies  and  fiscal   lateral and multilateral—must con-  in Africa, Latin America, and North   growing economy.
            pressures—but also ripple through   tinue to prioritize peace and stability.  America can reduce concentration   The war in West Asia is a stark
            the broader economy. Rising fuel      At  the  same  time,  India  must   risks. Long-term contracts, strategic   reminder  that  global  conflicts  can
            costs  tend  to  push  up  inflation,  in-  pragmatically safeguard its immedi-  reserves,  and  investments  in  over-  have immediate domestic conse-
            crease transportation expenses, and   ate energy needs. Maintaining stable   seas energy assets should also be   quences. For India, the path forward
            raise input costs for industries rang-  and constructive relations with Iran   strengthened.          lies not just in navigating the current
            ing from agriculture to manufactur-  remains  crucial,  particularly  to  en-  Beyond diversification, the crisis   crisis,  but  in  fundamentally  rethink-
            ing. In a country where millions are   sure continued access through the   should accelerate India’s transition   ing  how  it  secures  the  energy  that
            still vulnerable to price shocks, this   Strait of Hormuz. Any disruption in   toward alternative and renewable   powers its future.

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