India Faces Energy Security Risks Amid West Asia Tensions

India's energy security is under scrutiny due to rising geopolitical tensions in West Asia, which have exposed vulnerabilities in its import-dependent energy supply chains and macroeconomic stability. The country imports over 85% of its crude oil, making it acutely vulnerable to external shocks.

The recent conflicts in West Asia have shown that energy security extends beyond cost efficiency to resilience and strategic diversification. India's traditional definition of energy security as ensuring access to affordable fuel has been fundamentally altered by the evolving geopolitical landscape.

Resilience against supply disruptions, diversification of suppliers and routes, and macroeconomic stability amid price volatility are now key components of energy security. The Russia-Ukraine conflict served as an early warning, exposing the risks of overdependence on a single supplier.

The ongoing tensions in West Asia have amplified risks for India due to its heavy reliance on maritime oil routes. The Strait of Hormuz, a critical chokepoint through which nearly 25% of global oil passes, plays a pivotal role in determining price stability and supply continuity. India imports roughly 45% of its crude through this route.

To strengthen energy security, India must adopt a multi-dimensional strategy that includes expanding Strategic Petroleum Reserves (SPR), reducing oil intensity, enhancing maritime security, developing critical mineral ecosystems, and strengthening supply chain resilience.