India’s World: How do you characterise India’s energy security situation? What are some of the biggest challenges and opportunities in maintaining the country’s energy security?
Minister Hardeep Puri: India’s energy situation is sui generis, shaped by its unique challenges: a large population, significant development needs, and its status as the fastest-growing major economy. With demand and consumption growing at three times the global average, uninterrupted availability is critical. And we’ve done a good job on that front. For example, unlike many countries in Asia and Europe, India has avoided energy shortages.
The International Energy Agency projects that India will account for 25% of global energy demand growth over the next two decades. India is a large consumer, a major refiner (with 260 MMT capacity, soon expanding to 300-450 MMT), a big importer, and also a notable exporter. No other country matches this energy profile.
Thanks to the government’s forward-looking policies, India has been able to meet its growing demands. The opportunities align with areas of official engagement. In terms of supply diversification, India now imports from 40 countries, up from 27, including distant Latin American countries, supported by both long-term contracts and spot purchases. India also addresses affordability by managing costs across the energy value chain (production, freight, refining, dealer margins), making it the only major economy where petrol and diesel prices have dropped over a reference three-year period.
On sustainability, the third part of India’s energy trilemma, the share of biofuel in the energy mix has risen from 1.5% in 2014 to 20% today. The country is also making advances in green hydrogen. Together, these factors make India’s energy policy framework resilient.
India’s World: Looking forward, what should be the key focus areas to maintain India’s energy security?
Minister Puri: There are several segments of focus. India is making significant strides in Energy Network Planning (ENP) for sustainability. Gas usage is projected to rise from the current 6% to about 10% over the next four to five years. A major push is also underway for green hydrogen, with IOCL floating a tender for 10,000 tons per annum; this figure can be scaled up further. Green hydrogen will be key to achieving affordable clean energy. The target of the Green Hydrogen Mission—to produce five million metric tons of green hydrogen annually by 2030—is both replicable and, in fact, modest.
Biofuels have seen substantial growth, rising from below 1.5% to 20% over the last decade. Discussions are now underway to raise this to about 25%. Brazil serves as a model, having increased biofuel blending from 27% to 34%. Sustainable aviation fuel is another emerging priority in the clean energy mix.
Nuclear energy is also essential. Clean, efficient, and cost-effective, it will be indispensable for achieving net-zero carbon emissions. Its promotion is being pursued at the highest levels of policymaking. Collectively, these efforts mark a decisive and ongoing shift in India’s energy trajectory toward cleaner and more sustainable sources.
