India’s dependence on imported hydrocarbons has long been its greatest energy vulnerability, a risk sharply exposed by recent disruptions to global oil supplies. By investing heavily in offshore exploration, India is seeking not instant self-sufficiency, but a stronger and more resilient energy base capable of cushioning the economy against future geopolitical shocks

The Union Cabinet approved the National Offshore Exploration Scheme, termed Samudra Manthan, on July 2026 31, committing Rs 84,084 crore through Financial Year 2030-31, pushing for offshore hydrocarbon exploration, along with the stated ambition of adding over 600 million tonnes of oil equivalent to India’s reserve base. This new scheme does not seem to be an incidental policy intervention, but rather part of a larger strategic orientation towards building sustainable energy goals.

In the last four months, India has had to face the test of its energy security challenges, given the closure of the Strait of Hormuz, resulting in the collapse of oil traffic by almost 97 per cent. The vulnerability lies in the very structure of the energy supply chains. India’s import dependence on crude oil has climbed from 77 per cent in 2014 to nearly 88 per cent in 2026. Rising domestic demand, stagnant production and the gestation lag have made it more difficult. Also, roughly half of India’s natural gas supply is imported from West Asia. Moreover, around 90 per cent of crude is bought from abroad, and half of that transits through the Strait of Hormuz. Even today, indigenous output accounts for only about 12 per cent of total domestic refinery demand.

At the same time, India finds itself competing directly with China........

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