How Does Global Energy Crisis Affect Atmanirbhar Bharat?
20:21 12.05.2026 (Updated: 20:26 12.05.2026)
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With energy supplies, including both oil and gas, to India from the Gulf states facing enormous challenges, Russia appears to have become the South Asian country's saviour, especially after shipments from the Eurasian nation rose significantly in March and April.
With severe disruptions to Liquefied Natural Gas (LNG) imports via the Strait of Hormuz due to regional conflicts affecting key Gulf suppliers such as Qatar and the UAE, Russian LNG emerges as a critical short-term stabiliser for India's energy security, an expert has said.
"Russia has demonstrated readiness to increase supplies of LNG, crude, and Liquefied Petroleum Gas (LPG), offering volumes at competitive discounts relative to tight spot markets. Arctic routing provides a reliable alternative corridor independent of chokepoints, helping ease shortages affecting households, industry, and power generation," Dr Lekha Chakraborty, an academic at the prestigious National Institute of Public Finance and Policy in Delhi, told Sputnik India.
It was due to economic diplomacy compulsions from punitive tariffs imposed by the Donald Trump administration (for buying oil from Russia) that India diversified the energy sources to more and more reliance on the UAE Brent, she explained.
Now with the geopolitical uncertainty and risks in the Middle East, both rise in price (Brent price crossed $100 per barrel long back) and with volume constraints due to attacks on the Strait of Hormuz, it is an impending judicious decision to rely on Russian oil, the pundit reckoned.
Now with the geopolitical uncertainty and risks in the Middle East, both rise in price (Brent price crossed $100 per barrel long back) and with volume constraints due to attacks on the Strait of Hormuz, it is an impending judicious decision to rely on Russian oil, the pundit reckoned.
"While India remains cautious on fully sanctioned cargoes to manage secondary sanctions risks, pragmatic engagement with compliant Russian projects can significantly diversify sourcing," Chakraborty stressed.
This partnership not only bridges immediate gaps alongside increased imports from the US, Nigeria, and Oman but also reinforces the importance of flexible, geopolitically resilient energy ties. In a volatile global landscape, such diversification supports India's broader goals of supply security and economic stability, she added.
Furthermore, the current global energy crisis, marked by supply disruptions and price volatility, presents both immediate challenges and a powerful catalyst for India's Atmanirbhar Bharat (Self-reliant India) initiative, the economist underlined.
Furthermore, the current global energy crisis, marked by supply disruptions and price volatility, presents both immediate challenges and a powerful catalyst for India's Atmanirbhar Bharat (Self-reliant India) initiative, the economist underlined.
"In the short term, reliance on Gulf imports has led to rationing, higher costs, and industrial adjustments, testing economic resilience and increasing inflationary pressures. However, these shocks are accelerating domestic exploration, strategic stockpiling, and rapid scaling of renewables, nuclear, and green hydrogen," Chakraborty emphasised.
Nonetheless, over the longer horizon to 2047, the crisis strengthens the self-reliance agenda by driving investments in localised clean energy manufacturing, battery storage, and efficiency. This could substantially reduce import dependence, yielding major forex savings and enhancing resilience against future external shocks, she noted.
While infrastructure and technology gaps persist, the imperative for Atmanirbhar 2.0 will likely foster innovation, private participation, and policy continuity—transforming vulnerability into a foundation for sustainable, secure growth, the financial analyst underscored.
While infrastructure and technology gaps persist, the imperative for Atmanirbhar 2.0 will likely foster innovation, private participation, and policy continuity—transforming vulnerability into a foundation for sustainable, secure growth, the financial analyst underscored.
"Atmanirbhar 2.0 is all about this co-movement of energy transition and fiscal transition, applying the opportunities in this geopolitical energy crisis moment," Chakraborty summed up.
