A new report by the Council on Energy, Environment and Water (CEEW) has highlighted significant vulnerabilities in India’s energy security, revealing that the country’s strategic petroleum reserves currently cover only around 9–10 days of net crude oil imports. This is substantially lower than other major import-dependent economies such as Japan and South Korea, which maintain reserves capable of meeting more than 200 days of import requirements.
The report, titled How Secure is India’s Energy Future? Assessing Accessibility, Reliability, and Affordability, points to India’s heavy dependence on imported fossil fuels as a key concern. More than 85% of the country’s crude oil imports originate from just six nations, including Russia and major West Asian suppliers, increasing the risk of supply disruptions during geopolitical crises or market shocks.
According to the report, India’s energy vulnerabilities extend beyond crude oil. Nearly half of the country’s natural gas supply is imported as liquefied natural gas (LNG), yet India lacks dedicated strategic gas storage facilities. This leaves critical sectors such as fertiliser production and city gas distribution networks exposed to supply interruptions.
The study also warns about growing coal-related risks. India remains dependent on imported coking coal, particularly from Australia, for steel production, while non-coking coal imports are influenced by export policies in countries such as Indonesia. Additionally, declining domestic coal quality and rising extraction costs are gradually reducing coal’s cost advantage over renewable energy alternatives.
While clean energy can reduce dependence on imported fossil fuels, the report cautions that it introduces new challenges related to critical minerals, advanced technologies, and industrial supply chains. To address these concerns, the report recommends strengthening domestic manufacturing, diversifying supply sources, expanding recycling efforts, and building strategic international partnerships.
Experts argue that India’s future energy security strategy should focus on accelerating clean energy adoption, promoting electric mobility, improving industrial electrification, optimizing gas infrastructure, and developing resilient green technology supply chains to reduce long-term import dependence.
