India is implementing a two-track energy strategy to reduce its heavy reliance on imported oil and gas through renewables and strategic acquisitions.

This shift is critical for India's national security and economic stability. The country imports more than 90% of its crude oil [1] and over half of its natural gas [2], leaving its economy vulnerable to price volatility and geopolitical disruptions in key shipping lanes.

Pressure to diversify intensified after the 2026 Strait of Hormuz crisis, which caused a sharp rise in domestic energy costs [3]. In response, the U.S. became India's largest supplier of liquefied natural gas [3]. To further insulate itself, the government and private oil majors are pursuing overseas oil and gas assets to secure future supplies [4].

Parallel to these traditional energy plays, India is scaling its green infrastructure. Oil majors are investing more than ₹4 lakh crore in renewable energy [5]. The nation's installed non-fossil fuel capacity has already reached 52% of its total capacity [6]. Additionally, India achieved its 20% ethanol-blending target five years ahead of schedule [7].

Financial mechanisms are also evolving to support this transition. KPI Green Energy aims to raise up to $1 billion for a renewables trust by 2028 [8]. This funding arrives as the power sector faces new pressures to meet the electricity demands of expanding data centers, and hyperscalers [9].

These efforts aim to balance immediate energy needs with long-term climate goals. By diversifying both the source and the type of energy it consumes, India seeks to curb the cost volatility associated with its import dependence [9].

“India imports more than 90% of its crude oil”

India's strategy represents a pragmatic hedge against geopolitical instability. By simultaneously securing traditional fossil fuel assets abroad and accelerating the transition to renewables, the government is attempting to decouple its economic growth from the volatility of the Strait of Hormuz and other global chokepoints.