India has built energy resilience to withstand external shocks, says Puri

India has significantly strengthened its energy security by diversifying crude oil supplies, expanding strategic infrastructure and investing in domestic exploration, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Friday, asserting that the country is better equipped to deal with geopolitical disruptions than ever before.

Speaking at the CII International Energy Conference and Exhibition in New Delhi, Puri said the evolving global energy landscape underscores the need for a "secure, smart and sustainable" energy order, while expressing hope for an early resolution of ongoing geopolitical conflicts that continue to threaten supply chains.

Also read: India cuts energy import dependence to 42%, oil imports still meet 90% of demand: CII-EY


Recalling the disruption in the Strait of Hormuz earlier this year, Puri described it as a "watershed moment" for global energy markets. Unlike earlier assumptions that the strategic shipping route would never actually be shut, the events demonstrated the vulnerability of global oil trade, he said.

Despite the disruption, India was able to shield consumers from major external shocks, backed by diversified crude sourcing, expanded energy infrastructure, trusted international partnerships, strategic reserves and the growing use of alternative fuels, according to the minister.

India has moved out from looking at energy security largely through the prism of access to hydrocarbons, Puri said, adding that the country has been able to largely diversify supplies, build resilient infrastructure, trusted partnerships, technological innovation, and reserves. "They could perhaps be even more. Our holding capacity is about 74 days plus. We have alternative fuels, and above all, we have the ability to protect our citizens from external shocks," he added.

Puri also highlighted the government's recent approval of the Rs 84,000-crore Samudra Manthan scheme, calling it one of the world's largest state-backed initiatives to accelerate deepwater oil and gas exploration. Under the programme, private companies will undertake drilling while the government will support up to 50% of drilling costs, subject to a ceiling of around Rs 650 crore per well.

The minister said the incentive is aimed at attracting global expertise and investment into India's offshore sector. Companies such as Brazil's Petrobras have been engaged for their deepwater drilling capabilities, while BP is partnering with ONGC to enhance production from the Mumbai High fields.

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India is simultaneously expanding its refining capacity even as refining capacity is shrinking in parts of Europe, Puri said, adding that the country's growing energy demand will remain a key driver of global oil consumption. Between 2030 and 2050, nearly 30% of the increase in global oil demand is expected to come from India, underscoring the country's rising importance in global energy markets, he said.

A CII-EY report released earlier this week noted that India's dependence on imported primary energy has declined to around 42% in FY25 from 47% in FY17, driven largely by lower coal imports due to higher domestic production. However, it said, crude oil imports continue to meet nearly 90% of domestic demand, underlining the country's continued reliance on imported oil.

The report, titled 'India's Energy Security in a Volatile World: Independence, Efficiency and Resilience' highlighted that while crude oil imports account for around 90% of India's domestic demand, dependence on imported natural gas has increased to about 50% as consumption has outpaced domestic production. Meanwhile, coal import dependence has fallen to around 18%, aided by higher domestic output.