Prime Minister Narendra Modi highlighted ethanol blending as a key strategy to reduce India’s dependence on imported crude oil. Recent disruptions in global oil and gas supply chains, particularly arising from geopolitical tension in West Asia, have underscored the urgent need for India to strengthen domestic energy production and accelerate the development of alternative energy sources to reduce dependence on imports.

India rapidly growing economy has led to a sharp increase in demand for crude oil and natural gas. Oil and gas remain the largest component of the country’s import basket, currently valued at approximately 176 billion dollars. Crude oil imports increased from 189 million tonnes in 2014-15 to 243 million tonnes in 2024-25, and dependence on crude oil rose from 84 per cent in 2014-15 to around 90 per cent last year. The high import dependence, coupled with limited energy resilience, creates significant vulnerabilities ~ impacting not only economy stability but also national security and defence preparedness. Several path-breaking initiatives have been undertaken by the government to increase domestic production of crude oil and gas, but with limited success.

It is imperative that India now accelerates the development of alternative domestic energy sources as a national priority. India’s pathway to energy security lies in a diversified energy mix including solar, coal gasification, nuclear, hydrogen, and biofuels. No single energy source can in isolation deliver self-reliance for India. Solar energy generation has increased significantly. India has set a target of achieving 500 GW of renewable energy capacity by 2030; however, this ambition may be further enhanced towards 1,000 GW in the medium to long term.

Parallel efforts are needed to develop energy storage systems and strengthen grid capacity. India has also announced the Green Hydrogen Mission, with several incentives to achieve a target of 5 MMT of green hydrogen by 2030. Green hydrogen, while promising, remains cost intensive and will require time, infrastructure development, and technological advancements to achieve commercial scale. India should focus on developing its ecosystem and infrastructure for green hydrogen rather than replicating Western models without adopting them to India’ unique economics and infrastructure realities.

The nature of the hydrogen molecule presents challenges in production, storage, and transportation, requiring sustained R&D to make green hydrogen a sustainable, cost-effective, and safe fuel. The government has also announced important policy decisions to fast-track nuclear energy through small modular reactors. The global energy transition is entering a decisive phase. Road transport, through blending mandates, enables countries worldwide to reduce fossil fuel dependence while supporting agricultural economies. Ethanol must be reimagined –........

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