Former Reserve Bank of India (RBI) Governor Shaktikanta Das has stressed the need for India to reduce its dependence on imported energy, even as the country’s economy continues to show strong growth.
Das highlighted energy security as an important priority for India, given the country’s reliance on overseas supplies to meet a significant share of its energy requirements. Reducing import dependence could help strengthen economic resilience and limit the impact of global energy-price volatility.
India is among the world’s largest energy consumers, while crude oil and other fuels account for a substantial portion of the country’s import bill. Changes in international oil prices can therefore have a direct impact on the trade deficit, inflation and foreign-exchange requirements.
Das said India needs to accelerate efforts to develop domestic and alternative energy sources. Greater use of renewable energy, improvements in energy efficiency and the expansion of cleaner fuels could help reduce exposure to imported fossil fuels over the longer term.
The call comes as India continues to expand renewable-energy capacity and pursue its broader energy-transition goals. Investments in solar, wind, green hydrogen, electric mobility and other clean-energy technologies are expected to play a growing role in reducing fossil-fuel dependence.
Lower energy import reliance would also provide greater protection against disruptions in global supply chains and geopolitical tensions that can affect crude oil and gas markets.
With economic growth remaining strong, reducing energy import dependence could help India improve its external-sector resilience while supporting its longer-term transition towards a more diversified and sustainable energy system.