India's energy security strategy focuses on reducing 85-88% import dependency, with high costs driving a shift toward renewable energy, domestic production, and critical mineral investments, according to IISD 2026 Mapping India’s

India's energy security strategy focuses on reducing 85-88% import dependency, with high costs driving a shift toward renewable energy, domestic production, and critical mineral investments, according to IISD 2026 Mapping India’s Energy Policy and CPPR research.
Subsidies: -
₹4.3 lakh crore ($51 billion) for energy, with over 50% on electricity.
Oil & Gas: -
High import costs ($115/barrel) create pressure.
Infrastructure:-
 Growing investments in renewable generation and grid expansion.
Critical Minerals: -
Investment in the National Critical Mineral Mission to secure transition materials. I
Key Energy Security Expenses (FY 25/26)
Fossil Fuel Support:-
 India spent over ₹4.3 lakh crore ($51 billion) on energy subsidies, with a significant portion going to fossil fuels, notes IISD 2026 and The Hindu Business Line.
Electricity Subsidies: -
State-level electricity subsidies reached ₹2.4 lakh crore, comprising nearly 58% of all energy subsidies.
Fertilizer Subsidies:-
 Urea subsidies exceed $10.9 billion annually, essential for securing the agri-energy nexus.
Carbon Capture (CCUS):-
 A ₹20,000 crore outlay is planned over five years to aid industrial decarbonization
Strategic Investment Areas
Renewable Energy: -
Shifting towards solar and wind to reduce import dependence.
Critical Minerals:-
 ₹3.94 billion ($3.94 billion - reported as USD in source, likely INR based on context) dedicated to securing critical minerals, notes CPPR 2026.
Grid Infrastructure: -
Increased expenditure on transmission and distribution (T&D) to handle higher, more variable renewable energy loads.
Strategic Reserves: -
Strengthening emergency oil reserves. 
Drivers of Expenditure
Import Reliance: -
85-88% of crude oil is imported, with 50-60% of shipments passing through the high-risk Strait of Hormuz.
Geopolitical Risks: -
Global tensions (e.g., Red Sea) are forcing faster development of domestic energy sources and strategic reserves.
Rising Demand:-
 India is the third-largest oil consumer and is expected to have the highest growth in energy demand through 2040.
Details on the growth rate of specific renewable energy sectors (solar vs. wind).
A breakdown of foreign vs. domestic investment in India's energy grid.
Information on the impact of high fuel prices on specific industries (e.g., steel, cement). 
Let me know which area
Risk and Resilience: India's Energy Security in a Volatile Middle East
    This pressure is compounded by fiscal constraints. India's fertilizer subsidy is already among the largest components of public expenditure, with urea subsidy .
Energy Security is Emerging as India’s Biggest Macro Story
   India's Energy Dependence in Numbers Let's first look at the structural dependency: India imports roughly 85-88% of its crude oil requirements, making 
The Budget announced an INR 20,000 crore outlay over the next five years through a dedicated scheme for Carbon Capture, Storage, and Utilisation (CCUS).
  Global tensions present an opportunity for India amid inflationary risks: Finance Ministry. * India spent ₹4.3 lakh crore on energy subsidies in FY25; fossil fuels 
Mapping India’s Energy Policy 2026
 India's quantified energy subsidies were at least INR 4.3 lakh crore (USD 51 billion), or 2.3% of real GDP in  financial year 2025 (FY 25). Of this, INR 2.9 lakh.
International Institute for Sustainable Development
. 
Energy Security for India - 
Geopolitical events—a Houthi attack on tankers in the Red Sea, sanctions on a major supplier, or a diplomatic rift—can instantaneously reduce .
Why every energy crisis strengthens the case for clean public finance
   Disaggregating renewable energy financing by technology type remains difficult due to inconsistent reporting, but available data point to some clear trends
 India's crude oil basket averaged $113 per barrel in March, and it is just under $115 per barrel for April.
Energy security to drive multi-year capex cycle in India, investors should buy on dips, says 360 ONE
 Energy security to drive a multi-year capex cycle in India, investors should buy on dips, says 360 ONE. Representational Image
This tells us that the country's dependency on importing these commodities is increasing. 
MJF Lion ER YK Sharma 






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