image sourced from original article at The recent decision by the United States President to impose a steep tariff on Indian crude imports, in response to India's continued oil purchases from Russia, has sparked concerns about India's energy security. Rather than viewing this as a crisis, the article argues it should be seen as an opportunity for India to accelerate its journey towards self-reliance in hydrocarbons. Historical precedents show that India has weathered similar trade pressures before, but today's global volatility and India's growing energy demand make reform more urgent than ever.
The article calls for bold reforms in the oil and gas sector, including expanding domestic exploration, rationalising the tax regime to encourage investment, and bringing oil and gas under a lower tax slab to incentivise local production. These steps are essential to reduce India's heavy dependence on imported crude, which currently stands at nearly 88 percent. Strengthening domestic capacity will not only cushion India against external shocks but also provide greater leverage in global negotiations.
As energy becomes an increasingly weaponised tool in global politics, India must diversify its sources and boost domestic production to safeguard its strategic interests. The current tariff dispute, while challenging, presents a crucial moment for India to recalibrate its energy policies and build a more resilient future.
