"India's energy choices have implications well beyond its borders." Examine how India balances energy security, affordability and decarbonisation.

India is the world's fastest-growing major economy, so its energy choices affect global oil and LNG markets and the energy agenda of the Global South [1]. India imports 85% of its crude oil [2]. It handles the energy trilemma by spreading its supplies across more sources, managing prices, and moving to cleaner energy step by step.

Energy security: more suppliers, but thin buffers

• Long-term contracts: IOCL signed a 14-year, USD 7 billion LNG deal with ADNOC (UAE) at India Energy Week (IEW) 2025 [3].
• Neighbourhood role: IOCL's first LNG export deal sends gas to Nepal through Odisha's Dhamra Terminal [3].
• Gaps: Domestic crude output fell about 2.67% a year (2014–23), and funding for Strategic Petroleum Reserves was cut 81% in 2026-27 [2]. Imports are concentrated in the volatile Middle East, and spot purchases rose to about 35% [4].

Affordability: price shocks and fiscal dependence

• Long-term contracts protect against swings in spot prices. The Standing Committee urged joint action with other buyers against the "Asian premium" and rupee settlement of crude imports [4].
• Petroleum yields 14% of the Centre's tax revenue and 15% of states' own tax revenue [2]. This limits relief for consumers and slows the move away from oil.
• Low Ujjwala LPG refill rates show that access depends on price, not just supply [2].

Decarbonisation: gradual transition

• E20 petrol was launched at 84 outlets in 11 States/UTs at IEW 2023 [5].
• The Hydrogen Zone at IEW 2026 showed options for hard-to-abate sectors such as steel and fertilisers [6].
• Trade-off: Gas is a "bridge fuel", but the 14-year LNG contracts lock in fossil fuel imports. The clean-energy deals at IEW 2025 were mostly pilots and MoUs [3].

Implications beyond borders

• India's long-term demand shapes global LNG contracts, and its Global South focus shapes consumer-country diplomacy [1].
• Buyer groups formed against price premiums could change how producers set crude prices [4].

India's current approach is to secure supplies first and decarbonise gradually. To keep the balance, it should follow the Standing Committee's advice: complete pending pipelines (only 49% of crude moves by pipe) and set up an expert group to cut fossil fuel demand through green hydrogen, EVs and biofuels [4]. It should also rebuild its strategic reserves. Together, these steps would move India toward the SDG-7 goal of affordable, reliable and clean energy, both at home and for the Global South.