India says it will maintain multiple sources of energy supply

India Affirms Strategy of Energy Diversification

India's Foreign Secretary Vikram Misri has reaffirmed the country's commitment to sourcing energy from a variety of suppliers, emphasizing that national interests will always guide procurement decisions.

Speaking at a media briefing in New Delhi, Misri addressed concerns over India's oil imports, particularly from Russia, stating that the policy focuses on ensuring adequate availability, fair pricing, and reliable supply chains.

With India relying on imports for around 80-85 percent of its oil and gas needs, this approach aims to shield domestic consumers from inflationary pressures and supply disruptions.

The strategy underscores a pragmatic stance in a volatile global energy market, where geopolitical shifts and sanctions can rapidly alter availability and costs.

Navigating Global Pressures and Trade Dynamics

Recent comments from US President Donald Trump sparked questions about whether India would halt purchases of Russian crude, either directly or indirectly.

Trump had suggested India made such a commitment, amid earlier tensions that led to punitive tariffs on Indian goods.

However, Misri clarified that India neither depends on a single source nor plans to, allowing the mix of suppliers to adjust based on objective market conditions like availability, risks, costs, and logistics.

This comes after the US lifted a 25 percent tariff on Indian imports last week via an executive order, easing strains in bilateral ties following talks between Trump and Prime Minister Narendra Modi.

India's refiners have already shown flexibility, with Russian oil imports dipping in January as they turned to alternatives amid Western sanctions and ongoing trade discussions.

"We are neither dependent on any single source, nor do we intend to be. It is natural for the mix of sources to vary from time to time, depending on objective market conditions. Our approach is to maintain multiple sources of supply and diversify them as appropriate to ensure stability. The more diversified we are, the more secure we are."

Broader Push Towards Energy Security and Renewables

Diversification forms a key pillar of India's energy security framework, with oil companies making sourcing decisions through a complex matrix of factors to keep supplies steady.

Misri highlighted that safeguarding consumer interests remains the top priority, ensuring energy access at reasonable prices.

Beyond oil, India's recent budget for 2026 signals a wider diversification into renewables and nuclear power.

Allocations to the Ministry of New and Renewable Energy rose 24 percent to a record high, focusing on rooftop solar schemes, while import duties were cut on lithium-ion batteries and solar panel inputs.

The government also exempted customs duties on nuclear equipment until 2035, following new legislation to open the sector to private and foreign investment.

Support for critical minerals mining and carbon capture initiatives targets decarbonization in high-emission industries like steel and cement.

These steps reflect a holistic strategy blending traditional imports with clean energy transitions to meet growing demands sustainably.

In summary, India's resolve to maintain multiple energy sources prioritizes stability, affordability, and national interests, navigating trade frictions while advancing renewables and nuclear capabilities for long-term security.