India has repeatedly demonstrated its ability to absorb global energy shocks. When international crude prices surge, the immediate policy response is often aimed at protecting consumers from the full impact. That approach can be politically necessary and economically useful in a crisis. But it cannot, by itself, make India energy secure.

The larger lesson from repeated oil-price shocks is therefore straightforward: absorbing volatility is not the same as eliminating vulnerability.

India remains one of the world’s largest oil consumers and relies heavily on imports. The Petroleum Ministry said in August 2026 that the country’s annual crude oil import bill is nearly $144 billion, underlining the scale of the exposure. The government has also pursued domestic exploration, alternative fuels, renewable energy, energy efficiency and electrification as ways to reduce import dependence.

The question now is whether India can turn the next energy shock into an opportunity for structural change rather than simply another episode of short-term relief.

The Fiscal Tightrope

Subsidies, tax adjustments and support through public-sector oil companies can provide a cushion when crude prices rise sharply. During the West Asia-related oil shock in March 2026, the government reduced excise duty on petrol and diesel by ₹10 per litre, while retail prices were kept unchanged and public-sector oil marketing companies absorbed part of the pressure.

Such intervention can prevent an abrupt increase in household transport costs and inflation. But there is a fiscal trade-off.

Every rupee used to cushion an external energy shock has an alternative use — infrastructure, healthcare, education, urban transport or debt reduction. If public-sector balance sheets repeatedly become the shock absorber, the immediate pain may be reduced, but the underlying exposure to international oil markets remains.

That is why energy policy should increasingly be judged not only by how successfully India manages the next crisis, but by whether it needs less intervention when the crisis after that arrives.

Reserves Buy Time, Not Independence

Strategic petroleum reserves are an important part of the answer. India’s experience during recent geopolitical disruptions has shown the value of maintaining inventories and diversifying crude procurement. In March 2026, the government said the country was well stocked with crude and key petroleum products and had diversified supplies, including cargoes that did not depend on the Strait of Hormuz.

But strategic reserves should be understood correctly. They are a bridge during disruption, not a substitute for structural energy security.

The same principle applies to trade diplomacy. Maintaining relationships with multiple suppliers and developing payment arrangements that reduce exposure to financial and geopolitical bottlenecks can strengthen resilience. But diplomacy cannot control the global price of crude.

A resilient energy strategy therefore needs three layers: diversified imports for the present, strategic reserves for emergencies and domestic alternatives for the future.

The Green Transition Is an Energy Strategy

India’s clean-energy transition is frequently discussed through the lens of climate policy. It should also be treated as an economic and national-security strategy.

India has set a target of around 500 GW of renewable energy capacity by 2030, alongside its commitment to increase the share of non-fossil sources in installed electricity capacity. The government is also pursuing green hydrogen and other alternative fuels.

The crucial challenge is speed.

Adding renewable capacity is only one part of the transition. India needs stronger transmission networks, storage capacity, reliable distribution systems, domestic manufacturing and faster electrification of transport and industry. Otherwise, the country risks having renewable capacity on paper without enough flexibility to replace imported fossil-fuel consumption where it matters most.

This is where “Aapda into Avsar 2.0” should become more than a slogan: every external energy shock should trigger faster investment in the technologies that reduce India's exposure to the next one.

Transport Is Part of Energy Security

India cannot substantially reduce oil vulnerability without addressing how people and goods move.

NITI Aayog’s latest transport scenarios show the scale of the challenge. In 2025, road transport accounted for about 78% of passenger traffic and 66% of freight traffic. The report notes that this heavy dependence on roads contributes to higher energy use, logistics costs and emissions compared with more efficient modes such as rail and inland waterways.

This makes urban public transport more than a convenience issue.

A reliable metro, bus and suburban rail network can reduce private-vehicle dependence and, consequently, petroleum consumption. Similarly, shifting suitable long-distance freight from roads towards rail and waterways can reduce fuel use while improving logistics efficiency.

NITI Aayog has previously estimated logistics costs at around 14% of GDP and identified transportation and fuel costs as major components.

In other words, a freight corridor, an efficient port connection or a high-quality city bus system can have an energy-security dividend.

Domestic Production Still Has a Role

The green transition should not be interpreted as abandoning domestic hydrocarbons overnight. India will continue to require oil and gas during the transition, and domestic production can reduce some import exposure.

The government’s Samudra Manthan National Offshore Exploration Scheme, approved in 2026 with an outlay of ₹84,084 crore through FY2030-31, is explicitly aimed at strengthening domestic exploration and production. The government says additional production has the potential to reduce crude imports substantially.

The sensible approach is therefore not “oil versus renewables”. It is a transition strategy in which domestic production provides near- and medium-term resilience while clean energy progressively reduces demand for imported fossil fuels.

From Crisis Management to Structural Reform

India’s energy policy has reached a point where crisis management alone is no longer enough.

Subsidies can protect consumers. Strategic reserves can provide breathing space. Supplier diversification can reduce geopolitical risk. Domestic oil production can narrow the import gap.

But none of these measures permanently changes the fundamental equation if transport, industry and households continue to depend heavily on imported petroleum.

The real opportunity lies in using every oil shock to accelerate reforms that otherwise move too slowly — renewable power and storage, electric mobility, public transport, freight rail, waterways, efficient logistics, domestic energy technology and smarter urban planning.

That is the real meaning of Aapda into Avsar 2.0. The objective should not be to make every future crisis painless. It should be to ensure that every crisis leaves India less vulnerable than it was before.

India and Japan have taken a significant step towards deepening their strategic partnership, with Prime Minister Narendra Modi and Japanese Prime Minister Sanae Takaichi unveiling an ambitious roadmap to strengthen cooperation across defence, artificial intelligence (AI), economic security, clean energy and critical technologies.

Takaichi concluded her three-day maiden visit to India on Friday after co-chairing the 16th India-Japan Annual Summit, during which the two countries signed 16 major agreements aimed at expanding cooperation beyond traditional trade and diplomacy.

The summit marked a strategic shift in bilateral ties, highlighted by the launch of the first-ever India-Japan defence co-development project, enhanced collaboration in emerging technologies, and a renewed commitment to maintaining a free, open and rules-based Indo-Pacific region.

Defence Cooperation Reaches New Milestone

One of the most significant outcomes of the summit was the signing of the Naval Radio Antenna Programme, the first joint defence co-development initiative between the two countries. The project is expected to pave the way for broader collaboration in defence technology, maritime security and regional stability.

The two leaders also reaffirmed their commitment to strengthening defence cooperation through regular military exchanges, technology partnerships and joint initiatives aimed at enhancing regional security.

AI, Semiconductors and Economic Security in Focus

Artificial intelligence and economic resilience emerged as key priorities during the summit.

India and Japan signed a Joint Declaration on Economic Security, focusing on building resilient supply chains in strategic sectors such as semiconductors, critical minerals, pharmaceuticals, clean energy, information technology and artificial intelligence.

A separate AI cooperation agreement was also announced, under which both countries will collaborate on AI research, advanced computing infrastructure, safe and human-centric AI development, and innovation across the technology ecosystem.

As part of the collaboration, the IndiaAI Mission and Japan's Ministry of Economy, Trade and Industry (METI) will jointly promote AI research and business partnerships.

Leading academic and technology institutions, including IIT Bombay, BharatGen Technology Foundation, Japan's National Institute of Informatics, SarvamAI and Preferred Networks, will work together on developing next-generation large language models (LLMs) and AI foundation models.

Cooperation Expands Across Key Sectors

The summit also produced agreements covering battery manufacturing, critical minerals, pharmaceuticals, biotechnology, digital infrastructure, cybersecurity, internet governance and sustainable agriculture.

Among the notable initiatives is a plan to establish 1,000 biogas and organic fertiliser plants across India through the country's dairy cooperative network.

Scientific collaboration will also receive a boost through partnerships involving India's C-CAMP and NCBS-TIFR with Japan's RIKEN, focusing on healthcare, agriculture, biotechnology and environmental sciences.

Additionally, both countries launched a Next Generation Mobility Partnership to enhance cooperation in railways, automobiles, aviation, shipbuilding and logistics.

Joint Stand Against Terrorism

India and Japan reiterated their shared commitment to combating terrorism in all its forms.

The two leaders strongly condemned the April 22, 2025, terrorist attack in Pahalgam, Jammu and Kashmir, and called for stronger international action against terrorism, including measures to curb terror financing, dismantle safe havens and prevent the use of proxy groups.

Both sides also reaffirmed support for comprehensive United Nations Security Council (UNSC) reforms and pledged to continue working with fellow G4 nations to make the global body more representative of contemporary geopolitical realities.

Cultural Diplomacy Adds Personal Touch

Beyond strategic agreements, Takaichi's visit also generated interest for its cultural symbolism.

Prime Minister Modi and his Japanese counterpart greeted each other with the traditional Indian "Namaste", with folded hands, during official engagements. Japan's Cabinet Public Relations Office highlighted the significance of the gesture, noting that the Anjali Mudra represents respect, humility and gratitude.

The leaders also announced that 2027 will be celebrated as the India-Japan Year of Shared Horizons, commemorating 75 years of diplomatic relations between the two countries.

Describing the visit as a milestone, India's Ministry of External Affairs said the agreements signed during the summit have further strengthened the India-Japan Special Strategic and Global Partnership, positioning both nations to cooperate more closely on regional security, advanced technology and economic resilience in the years ahead.