India's Energy Security
Indian Economy
- PYQs4
- Articles1
Background
India's high energy import dependence makes it vulnerable to global price volatility and geopolitical shocks, impacting its economy, inflation, and foreign policy. UPSC frequently asks about India's strategic vulnerabilities and measures to enhance resilience.
Energy security refers to the uninterrupted availability of energy sources at an affordable price. For India, a rapidly developing economy, ensuring energy security is critical for sustained economic growth, industrialization, and the welfare of its large population, given its high dependence on crude oil imports.
Facts & tables
- Import Dependence
- India imports nearly 90% of its crude oil.
- Global Position
- World's third-largest oil importer and one of the fastest-growing energy consumers.
- Economic Impact
- Energy affordability directly impacts transport costs, food inflation, fertilizer subsidies, and manufacturing competitiveness.
- Strategic Vulnerability
- The Strait of Hormuz is a major strategic vulnerability for India's crude oil and LPG imports.
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | Geopolitics & International Conflicts |
| Conceptual area | Macroeconomic Trends & Inflation |
| Body | Role |
|---|---|
| IndianOil Corporation Ltd. | Major oil refiner and distributor |
Prelims angle
Prelims angle: Factual recall
Prelims angle: Terminology-based question
- India imports ~90% of crude, 3rd largest global importer.
- Vulnerable to geopolitical shocks (e.g., West Asia, Russia-Ukraine war).
- Impacts inflation, transport, food, manufacturing costs.
- Strategies: diversify sources, strategic petroleum reserves, domestic exploration, alternative energy.
- Strait of Hormuz is a critical chokepoint for India's imports.
| Year | Framing tags |
|---|---|
| 2023 | Statement-based questions, Factual recall |
| 2023 | Multi-statement analysis, Factual recall |
| 2020 | Factual recall, Terminology-based question |
| 2019 | Factual recall, Conceptual understanding |
Timeline
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Indian Economy
Conceptual area
-
Geopolitics & International Conflicts
Conceptual area
-
Macroeconomic Trends & Inflation
Conceptual area
-
Prelims 2019
Factual recall, Conceptual understanding
-
Prelims 2020
Factual recall, Terminology-based question
-
Prelims 2023
Statement-based questions, Factual recall
-
Prelims 2023
Multi-statement analysis, Factual recall
-
The U.S. ends Russia oil waiver, implications for India
India's energy security is paramount due to high import dependence (~90% crude), making it vulnerable to global geopolitical and market shocks. Diversification of sources, strategic reserves, domestic exploration, and alternative energy pathways are key strategies to ensure affordable and stable energy supply for sustained economic growth.
See also
Dashed boxes: related topics without a notes page yet. Tap a solid box to open notes.
Past papers
2020–2023 · 2 questions
In the news
The U.S. ends Russia oil waiver, implications for India
India's energy security is paramount due to high import dependence (~90% crude), making it vulnerable to global geopolitical and market shocks. Diversification of sources, strategic reserves, domestic exploration, and alternative energy pathways are key strategies to ensure affordable and stable energy supply for sustained economic growth.
Try these PYQs
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
* The term "West Texas Intermediate" (WTI), often seen in news reports, refers to a grade of crude oil. WTI is used as a benchmark for oil pricing in North America. * Specifically, WTI is a light, sweet crude oil, meaning it has a low density and low sulfur content. This makes it easier and more desirable to refine into gasoline and other products. WTI serves as one of the main benchmarks for oil prices globally. * West Texas Intermediate (WTI) and Brent Crude are two of the most important global benchmarks for crude oil prices. Brent Index is used as a benchmark for oil pricing globally, including Europe, Asia, and Africa.
Consider the following Statements :
Statement-I: Switzerland is one of the leading exporters of gold in terms of value.
Statement-II: Switzerland has the second largest gold reserves in the world.
Which one of the following is correct in respect of the above statements?
* Statement I is correct In 2021, Switzerland exported $86.7B in Gold, making it the 1st largest exporter of Gold in the world. Switzerland is consistently the world's leading gold-exporting country based on value. (Please note: The list is dynamic & keeps varying yearly) * Statement II is not correct. The United States is way out in front as the country with the largest gold reserves in the world at 8,000 tonnes (as of 2024). * In India, the largest resources of gold ore (primary) are located in Bihar (44%) followed by Rajasthan (25%), Karnataka (21%), West Bengal (3%), Andhra Pradesh (3% ), Jharkhand (2 %). The remaining 2% resources of ore are located in Chhattisgarh, Madhya Pradesh, Kerala, Maharashtra and Tamil Nadu. (PIB 2021) * India is one of the largest gold importers, sourcing 800-1,000 tons annually, mainly from Switzerland, the UAE, and South Africa. Imports are driven by high domestic demand for jewelry and investment. Gold exports, primarily in jewelry, target the US, UAE, and Hong Kong, supporting India's trade through its jewelry manufacturing sector.
Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
* The country's vegetable oil imports for the first six months of the oil year during November 2018 to April 2019 stood at 75,41,689 tonne, up about 3% from 73,18,295 tonne reported in the same period last year. * Vegetable oils account for the highest import in terms of value in the last five years. India relies on imports for 70 percent of its edible oil consumption.
Consider the following statements :
Statement-I : India accounts for 3.2% of global export of goods.
Statement-II :Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme.
Which one of the following is correct in respect of the above statements?
* Statement I is incorrect: India's share in global merchandise trade is only 1.8% and 4% in global services. India plans to increase its export share in global trade from 2.1% to 3% by 2027 and 10% by 2047. * Statement II is correct: The PLI scheme is open to both domestic and international manufacturers. Samsung as well as Indian firms such as Dixon Technologies, UTL, Neolyncs, Lava International, Optiemus Electronics and Micromax are also expanding their factories to take advantage of the PLI scheme.