A parliamentary panel in India has raised significant concerns regarding the country’s heavy reliance on imported crude oil, which stands at a staggering 89 percent. This substantial dependence on foreign oil sources poses a considerable risk to India’s energy security and economic stability. The panel emphasized that such a high level of import reliance makes the nation vulnerable to fluctuations in global oil prices and geopolitical tensions. Any disruption in the supply chain or increase in oil prices can have far-reaching consequences for the Indian economy, affecting everything from inflation rates to the overall cost of living for citizens.
The committee has urged the government to take proactive measures to reduce this dependence by promoting domestic oil production and exploring alternative energy sources. Investments in renewable energy technologies, such as solar and wind, could help diversify the energy portfolio and lessen the burden on imported fuels. Additionally, the panel suggested that enhancing energy efficiency and adopting cleaner technologies could play a crucial role in mitigating the risks associated with high import dependence.
Moreover, the importance of strategic reserves was highlighted, emphasizing that India should bolster its strategic petroleum reserves to cushion against potential supply disruptions. By ensuring that the country has sufficient reserves to weather short-term supply shocks, the government can provide a buffer that aids in maintaining economic stability. The panel’s warnings serve as a clarion call for immediate action, urging policymakers to prioritize energy independence as a key component of national security strategy.
