How India is shielding itself from geopolitical ups and downs

An intensifying conflict in the Middle East will undoubtedly affect India’s oil security if shipping routes are disrupted. A combination of strategic diversification and a growing renewable portfolio is helping India build greater resilience against global geopolitical volatility.

A Moneycontrol analysis shows that renewable energy now accounts for 36 percent of total installed capacity—almost double what it was a decade ago. The share of renewables in actual power generation has also seen a significant rise.

Coal remains India’s primary energy source, but the country's dependence on imported coal has declined. In FY25, coal imports constituted just 23 percent of domestic production, down from 36 percent a decade earlier.

Although India’s crude oil demand has grown with the economy—rising to 242.7 million tonnes in FY25—the country has increasingly diversified its sources of oil. According to UN COMTRADE data, the share of Middle Eastern countries in India’s total crude oil imports has dropped to 46.5 percent in FY25, compared with 65 percent a decade ago.