Renewables may save India $240 bn in imports

India has broadened its crude oil sourcing to 43 nations following disruptions in supplies through the Strait of Hormuz, with the UAE becoming a key supplier, according to Neeraj Mittal, Secretary of India's Ministry of Petroleum and Natural Gas. While Russia remains the primary oil supplier, India has started importing from countries like Venezuela.

Mittal stated that India's diversification strategy proved beneficial during the recent crisis, limiting price increases to just 7 percent compared to pre-crisis levels. The nation has also augmented its energy purchases from the US, with liquefied petroleum gas from America accounting for 67 percent of total imports. Energy supplies were impacted after the Strait of Hormuz was effectively closed following Iran's initiation of the war on February 28, accounting for about a fifth of global oil and gas flows.

India, now importing over 90 percent of its crude, relies heavily on oil imports for its growing economy, unlike many countries experiencing demand destruction due to price hikes. The UAE has emerged as a significant hydrocarbon supplier to India, providing about 15 to 20 percent of total energy imports, including LPG, LNG, and crude oil.

The two nations are strengthening their energy sector collaboration, including crude storage and gas supply. India and the UAE share a strong bond, particularly in energy matters, and aim to deepen their partnership in light of the potential disruptions caused by geopolitical events.