India, June 18 : India’s energy security framework faces significant challenges as the country’s strategic petroleum reserves currently cover only about 9-10 days of net crude oil imports, according to a report released by the Council on Energy, Environment and Water (CEEW) on Wednesday.
The study, titled “How Secure is India’s Energy Future? Assessing Accessibility, Reliability, and Affordability,” examines the strengths and weaknesses of India’s energy supply chain amid rising global uncertainties. The findings suggest that the country’s emergency crude stockpile remains modest compared with several major energy-importing nations.
Countries such as Japan and South Korea, which are also heavily dependent on imported crude oil, maintain strategic reserves capable of supporting domestic demand for more than 200 days. In contrast, India’s comparatively smaller reserve capacity leaves it more exposed to disruptions in global energy markets and geopolitical tensions.
The report points out that India’s crude import basket remains concentrated, with more than 85 percent of supplies sourced from only six nations, including Russia and several countries in West Asia. Such concentration limits flexibility in responding to supply interruptions and increases vulnerability during periods of international instability.
According to Hemant Mallya, Fellow at CEEW, any disruption involving crude oil, liquefied natural gas (LNG), liquefied petroleum gas (LPG), coal shipments, or critical maritime trade routes can quickly influence household expenses and economic stability. Rising fuel prices can impact transportation costs, fertiliser subsidies, industrial production, and inflation, creating ripple effects across multiple sectors.
The report also raises concerns about the country’s natural gas preparedness. India currently imports nearly half of its gas requirements in the form of LNG but lacks dedicated strategic gas storage infrastructure. This absence could leave key sectors, including fertiliser manufacturing and city gas distribution networks, vulnerable during supply disruptions.
Coal security remains another area requiring attention. While India has increased domestic coal production, the steel industry continues to rely heavily on imported coking coal, particularly from Australia. Additionally, non-coking coal imports remain exposed to policy changes in Indonesia, one of the country’s major suppliers.
The report further notes that domestic coal mining faces challenges linked to declining coal quality and increasing extraction costs. These factors are gradually reducing the economic advantage traditionally enjoyed by coal-based power generation when compared with emerging firm renewable energy solutions.
Experts involved in the study argue that expanding clean energy deployment could help reduce dependence on imported fossil fuels over the long term. Greater adoption of renewable energy sources would not only strengthen supply security but also contribute to India’s climate commitments and sustainability goals.
However, the transition toward cleaner energy systems introduces a new set of strategic considerations. Renewable energy technologies, battery manufacturing, and advanced energy infrastructure require access to critical minerals, specialised technologies, and global industrial supply chains.
The report recommends a balanced strategy to address these emerging risks. Measures such as strengthening domestic manufacturing capabilities, diversifying import sources, expanding recycling initiatives, and building strategic international partnerships could help secure access to essential materials and technologies.
As global energy markets continue to face uncertainty due to geopolitical conflicts, trade disruptions, and shifting policy landscapes, the report underscores the importance of building a more resilient and diversified energy ecosystem. Enhancing reserve capacities, improving supply-chain flexibility, and accelerating investments in clean energy are expected to play a crucial role in strengthening India’s long-term energy security.