Business Business: Escalating conflict in the Middle East will undoubtedly impact India’s oil security if shipping routes are disrupted. The combination of strategic diversification and a growing renewable energy portfolio is helping India build greater resilience against global geopolitical instability.
A Moneycontrol analysis shows that renewables now account for 36 per cent of total installed capacity – almost double what it was a decade ago. The share of renewables in actual electricity generation has also seen a significant increase.
Coal remains India’s primary energy source, but the country’s reliance on imported coal has declined. In FY25, coal imports account for just 23 per cent of domestic production, down from 36 per cent a decade ago.
Although India’s crude oil demand has grown along with the economy – rising to 242.7 million tonnes in FY25 – the country has increasingly diversified its sources of oil. According to UN Comtrade data, the share of Middle Eastern countries in India’s total crude oil imports is expected to decline to 46.5 per cent in FY25, from 65 per cent a decade ago.
