Rethinking India's Energy Dependencies

In light of geopolitical tensions involving Iran, Israel, and the US, India needs to reassess its energy dependencies and strive for deeper atmanirbharta (self-reliance), particularly in the energy sector. India's over-reliance on oil and gas imports from volatile regions like West Asia poses significant risks, especially given the current cooking gas shortages affecting households and businesses.

Current Energy Scenario

• India's oil and gas import dependency is around 60-65%, largely sourced from West Asia.
• The share of non-fossil fuel power capacity has crossed 50% of the total installed capacity of 509 GW.
• Household dependence on liquefied petroleum gas (LPG) and transport sectors on gas has grown significantly.
• The vulnerability to supply disruptions has increased, as noted by Shamika Ravi, an Economic Advisory Council member.

Strategic Recommendations

• Augmenting domestic fossil fuel production is crucial despite global climate change imperatives.
• Invest in more and faster exploration and production, following the "Drill, baby, drill" approach.
• Geographical diversification of energy sources is necessary to reduce reliance on the Strait of Hormuz.
• Encourage West Asian partners to develop shipping capabilities away from vulnerable chokepoints.
• Promote the use of ethanol and fast-track domestic oil and gas exploration, especially from new discoveries in regions like the Andamans.

India-Middle East-Europe Economic Corridor (IMEC)

The proposed IMEC aims to establish a new transport route through the UAE, Saudi Arabia, Jordan, Israel, and Greece. However, ongoing Iranian threats may render this corridor unviable without a comprehensive peace settlement in West Asia.

Beyond Energy: Reducing Strategic Vulnerabilities

• Reduce over-dependence on Chinese supplies, particularly in rare earths and electronic components.
• Encourage diversification of software services markets beyond North America to reduce dependency on the US.
• Create indigenous platforms to decrease reliance on foreign tech giants like Google and Microsoft, safeguarding national security interests.

Conclusion

Achieving atmanirbharta in energy and other critical sectors involves significant costs and slimmer profit margins. However, the price is worth paying for strategic autonomy and security.