NEW DELHI — In a robust reaffirmation of its pragmatic energy diplomacy, India is accelerating its strategy to source oil, gas, and critical energy resources from a highly diversified global network. The objective is clear: to ensure uninterrupted, affordable energy for its rapidly expanding 1.4-billion-strong economy amid intensifying global volatility.
Randhir Jaiswal, Spokesperson for the Ministry of External Affairs
Energy security is very important for us. We are trying to diversify our sources from across the world, and that is our policy at present. We welcome whatever support we can receive from various markets.
This declaration arrives at a critical juncture. Global energy markets remain turbulent, strained by geopolitical friction—particularly in West Asia—and shifting trade paradigms. As the world’s third-largest energy consumer, India currently imports roughly 85 to 88 per cent of its crude oil. Consequently, insulating its supply chains from external shocks has become a top strategic priority for the government.
To mitigate risk, India has radically widened its crude oil import basket. Pivoting away from an overwhelming historical reliance on Middle Eastern suppliers, New Delhi now sources crude from nearly 40 nations. Russia has notably emerged as a cornerstone supplier; securing discounted Russian crude has been instrumental in helping India manage domestic inflation during recent global price spikes. Simultaneously, India has significantly ramped up imports from the United States, Brazil, Mexico, and resource-rich African nations such as Nigeria and Angola.
This agile, multi-pronged approach also extends to liquefied natural gas (LNG). Indian energy firms are actively locking in long-term supply contracts with producers in the United States, Australia, and Qatar. By pairing these stable agreements with opportunistic spot market purchases, India has successfully diluted its dependence on any single region, navigating supply bottlenecks more effectively than many of its global peers.
Beyond international imports, New Delhi is aggressively stimulating domestic production. Under the Open Acreage Licensing Policy (OALP), the government has unlocked over 100,000 square kilometres for intensive exploration. Sweeping sector reforms are designed to court foreign investment and maximise output from both conventional reserves and unconventional sources, like coal bed methane.
Strategic Petroleum Reserves (SPR) constitute another vital defence mechanism. India is actively expanding its subterranean storage capacity and forging strategic partnerships—most notably with the United Arab Emirates—to store foreign crude on Indian soil. These reserves currently provide a multi-week buffer, acting as crucial insurance against sudden geopolitical disruptions.
Looking beyond fossil fuels, India is fast-tracking its historic transition toward green energy. Remarkably, the nation has already achieved its target of 50 per cent non-fossil fuel power capacity, well ahead of schedule. The road ahead is even more ambitious: India aims to achieve 500 GW of non-fossil power by 2030 through massive solar and wind deployments. Simultaneously, the National Green Hydrogen Mission is scaling rapidly, targeting an annual production of five million metric tonnes by the decade’s end. Nuclear energy is also primed for a renaissance, with plans to deploy new reactors and small modular technologies to reach 100 GW by 2047. Complementing this grid overhaul are aggressive ethanol blending mandates, compressed biogas initiatives, and a surging electric mobility sector.
Industry analysts observe that India’s “multi-alignment” energy doctrine—anchored purely by commercial viability, price competitiveness, and supply reliability—is yielding tangible dividends. This has insulated the broader economy from crippling price shocks while sustaining robust industrial growth.
Nevertheless, formidable challenges loom. Easing infrastructure bottlenecks, upgrading logistics networks, and navigating fierce global resource competition will demand relentless focus. As a burgeoning population and relentless economic expansion drive energy needs higher, continuous innovation will be essential.
For New Delhi, true energy security transcends imports; it requires a delicate equilibrium of global diversification, heightened self-reliance, and rapid technological advancement. In an increasingly fragmented world, India’s agile, inclusive energy policy remains the definitive cornerstone of its economic diplomacy and long-term national prosperity.
