{"id":345469,"date":"2025-08-30T21:37:49","date_gmt":"2025-08-30T16:07:49","guid":{"rendered":"https:\/\/forumias.com\/blog\/?page_id=345469"},"modified":"2025-08-30T21:37:49","modified_gmt":"2025-08-30T16:07:49","slug":"answered-critically-examine-the-statement-energy-sovereignty-is-the-new-oil-in-the-context-of-indias-current-geopolitical-and-economic-vulnerabilities-and-evaluate-the-po","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-critically-examine-the-statement-energy-sovereignty-is-the-new-oil-in-the-context-of-indias-current-geopolitical-and-economic-vulnerabilities-and-evaluate-the-po\/","title":{"rendered":"[Answered] Critically examine the statement \u201cenergy sovereignty is the new oil\u201d in the context of India\u2019s current geopolitical and economic vulnerabilities, and evaluate the policy measures needed to achieve uninterrupted, affordable, and indigenous energy security."},"content":{"rendered":"

Introduction<\/strong><\/h2>\n

India, importing 85% of crude oil and 50% of natural gas (MoPNG, 2024), faces a $170 billion energy import bill. In an unstable geopolitical order, \u201cenergy sovereignty\u201d has become synonymous with national security.<\/p>\n

The Vulnerability Landscape: Why \u201cEnergy Sovereignty\u201d is the New Oil<\/strong><\/h2>\n
    \n
  1. Import Dependence:<\/strong> Oil imports form over 25% of India\u2019s total merchandise imports (FY 2023-24)<\/strong>, weakening rupee stability and widening CAD.<\/li>\n
  2. Geopolitical Risks:<\/strong> Russian oil now makes up 35\u201340%<\/strong> of imports (S&P Global, 2025), creating over-concentration. Middle East flashpoints (Hormuz chokepoint) threaten supply.<\/li>\n
  3. Energy Transition Imbalances:<\/strong> Despite renewable expansion, fossil fuels still meet 80% of global demand<\/strong> (IEA, 2023). India risks stranded assets and vulnerability if it over-relies on volatile imports.<\/li>\n
  4. Strategic Risks:<\/strong> India\u2019s SPR (Strategic Petroleum Reserves)<\/strong> covers just 9.5 days of net imports<\/strong>, compared to China\u2019s 90 days<\/strong> and the US\u2019s 60 days<\/strong>.<\/li>\n<\/ol>\n

    Global Flashpoints: Lessons for India<\/strong><\/h2>\n
      \n
    1. 1973 Oil Embargo:<\/strong> Triggered diversification strategies in the West.<\/li>\n
    2. 2022 Russia-Ukraine War:<\/strong> Exposed Europe\u2019s over-dependence (40% gas from Russia) \u2192 coal revival.<\/li>\n
    3. 2025 Iberian Blackout:<\/strong> Showed risks of over-reliance on intermittent renewables without storage.
      \n\u27a1 Lesson: Energy strategy must balance sovereignty, diversification, and resilience.<\/li>\n<\/ol>\n

      India\u2019s Current Policy Gaps<\/strong><\/h2>\n
        \n
      1. Over-centralisation in fossil imports<\/strong> despite renewable push.<\/li>\n
      2. Slow nuclear expansion<\/strong> \u2014 capacity stagnant at 8.8 GW vs 63 GW in France.<\/li>\n
      3. Storage Deficit<\/strong> \u2014 inadequate pumped hydro and battery capacity.<\/li>\n
      4. Technology Dependence<\/strong> \u2014 China controls 70% of solar PV manufacturing and 80% of lithium-ion battery supply chains (IRENA, 2024).<\/strong><\/li>\n<\/ol>\n

        Pathways to Energy Sovereignty: Five Pillars<\/strong><\/h2>\n
          \n
        1. Coal Gasification & Carbon Capture:<\/strong> Leverage 150 billion tonnes of coal reserves<\/strong> for syngas, methanol, hydrogen; reduce reliance on imported LNG.<\/li>\n
        2. Biofuels & Ethanol Blending:<\/strong> Ethanol blending already transferred \u20b992,000 crore<\/strong> to farmers (NITI Aayog, 2023). Scaling E20 by 2025<\/strong> can save $4 billion annually<\/strong> in forex.<\/li>\n
        3. Nuclear Power Expansion:<\/strong> Implement thorium-based reactors<\/strong> and Small Modular Reactors (SMRs) for dispatchable zero-carbon baseload; diversify uranium partnerships (Kazakhstan, Australia).<\/li>\n
        4. Green Hydrogen Mission (2023):<\/strong> Target 5 MMT\/year by 2030<\/strong>; indigenous electrolyser manufacturing crucial to avoid China-like dependence.<\/li>\n
        5. Pumped Hydro Storage & Grid Inertia:<\/strong> With over 96 GW potential<\/strong> (CEA), India can stabilise renewables-heavy grids.<\/li>\n<\/ol>\n

          Complementary Policy Measures<\/strong><\/h2>\n
            \n
          1. Strengthening SPRs<\/strong> to 30\u201360 days of imports.<\/li>\n
          2. Diversification of sources<\/strong> (Africa, Latin America, US shale).<\/li>\n
          3. Atmanirbhar Bharat push<\/strong> for battery, solar, and hydrogen supply chains.<\/li>\n
          4. Regional energy diplomacy:<\/strong> I2U2 (India\u2013Israel\u2013UAE\u2013US), International Solar Alliance.<\/li>\n
          5. Just Transition policies<\/strong> ensuring affordability and equity in rural electrification.<\/li>\n<\/ol>\n

            Conclusion<\/strong><\/h2>\n

            As Vaclav Smil argues in Energy and Civilization,<\/strong> power defines prosperity<\/strong>. India\u2019s path lies in foresight-driven energy sovereignty \u2014 blending resilience, affordability, and self-reliance to secure tomorrow\u2019s most vital resource.<\/p>\n","protected":false},"excerpt":{"rendered":"

            Introduction India, importing 85% of crude oil and 50% of natural gas (MoPNG, 2024), faces a $170 billion energy import bill. In an unstable geopolitical order, \u201cenergy sovereignty\u201d has become synonymous with national security. The Vulnerability Landscape: Why \u201cEnergy Sovereignty\u201d is the New Oil Import Dependence: Oil imports form over 25% of India\u2019s total merchandise… Continue reading [Answered] Critically examine the statement \u201cenergy sovereignty is the new oil\u201d in the context of India\u2019s current geopolitical and economic vulnerabilities, and evaluate the policy measures needed to achieve uninterrupted, affordable, and indigenous energy security.<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-345469","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/345469","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=345469"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/345469\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=345469"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}