The increasing tension in the Strait of Hormuz has once again brought India’s energy dependence to the fore. India imports about 88% of its crude oil and more than half of its natural gas requirement, due to which global tensions have a direct impact on its economy.
Business News: The increasing geopolitical tension in the Strait of Hormuz located in the Middle East has once again destabilized the global energy market. The crisis has served as a dire warning for India in particular, as the country is heavily dependent on imports for its energy needs. In this background, industrialist Anil Agarwal, Chairman of Vedanta Limited, has appealed to India to move rapidly towards energy self-reliance.
India’s Big Dependence: A Structural Risk
India currently imports about 88 percent of its crude oil needs and more than half of its natural gas. This dependence makes the country’s economy highly vulnerable to global supply disruptions. Any kind of tension or conflict in strategic routes like the Strait of Hormuz directly impacts oil prices and supply chains, the impact of which is immediately visible on a large consumer country like India. This is why experts consider it not only an economic but also a strategic risk.
Anil Aggarwal’s view: India is not poor in resources
Anil Agarwal believes that India is not a country suffering from lack of resources, but the problem lies in their exploration and utilization. According to him, India may have potential resources equivalent to approximately 300 billion barrels of oil. He says that the biggest obstacle in the country is not the lack of resources but the pace of modern technology, investment and exploration. If these sectors are accelerated, India can meet a large part of its energy needs through domestic production.
The picture can change with technology and investment
Today, technologies like Artificial Intelligence (AI), digital oilfield technology and advanced seismic imaging are making oil and gas exploration more effective and faster. Taking a big step in this direction, Vedanta Limited has planned an investment of about 5 billion dollars. The company aims to increase its production to 1 million barrels per day. This step is being considered an important effort towards strengthening India’s energy capacity.
India has made several policy reforms in the oil and gas sector in the last few years. The licensing process has been simplified and the rules have been made more favorable for investors. However, Anil Agarwal says that a huge gap still exists between policy and actual implementation. Many projects progress slowly due to delays in getting approvals and complexity of administrative procedures.
need for global cooperation
Aggarwal also stressed that India should increase cooperation with international energy companies, especially with US companies that have extensive experience in deep sea oil and gas extraction. These companies have successfully operated on a large scale in challenging areas such as the Gulf of Mexico and the North Sea. With such cooperation, India will not only become technologically stronger but will also be able to develop its domestic resources faster.
Aggarwal also said that at the global level, mining and hydrocarbon production is now being considered not against the environment but as an essential part of the energy transition. While earlier these activities were seen as environmental risks, they are now considered essential for energy security and development.
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