India avoided a major energy crisis during a four-month disruption of the Strait of Hormuz that began in May 2026 [3].

The stability of the fuel supply is critical because the Strait of Hormuz is a primary artery for global oil shipments. A total collapse in supply would have spiked domestic prices and crippled industrial productivity.

Vartika Shukla, former Chairman and Managing Director of Engineers India Limited, said the country's resilience was the result of long-term planning. "Our energy system, built over the last 10 to 12 years, acted as a 'shock absorber' and helped reduce the impact of the Hormuz-linked energy crisis on ordinary citizens," Shukla said [4].

To maintain stability, Indian authorities relied on a diversified import base covering 41 countries [2]. This strategy allowed the government to pivot quickly as Middle Eastern supplies vanished due to war in the region. Venezuela emerged as India’s third-largest crude oil supplier during the height of the crisis in May 2026 [1].

Domestic production and government subsidies also played a role in shielding consumers from the volatility of global spot markets. The infrastructure build-up, spanning more than a decade, provided the necessary storage and transport capacity to handle non-traditional oil sources [4].

While the government kept consumer supplies stable, the economic cost varied by sector. Some reports indicate the agricultural sector narrowly avoided a fertilizer crisis, though the government had to intervene in spot markets at prices significantly higher than pre-war levels [5].

“Our energy system... acted as a 'shock absorber' and helped reduce the impact of the Hormuz-linked energy crisis.”

India's ability to weather the Hormuz closure demonstrates a strategic shift from reliance on a few regional partners to a globalized procurement model. By investing in infrastructure and diversifying its supplier base to 41 countries, India reduced its vulnerability to geopolitical shocks in the Middle East, though the reliance on expensive spot-market interventions suggests that total energy independence remains a distant goal.