Energy Security Starts At Home?

India’s Real Energy Crisis Isn’t In The Gulf. It’s The Lack Of Political Will At Home

The energy crisis, in which the American/Israeli attack on Iran has plunged the world, with 20% of the world’s supplies of oil and gas being choked off at the Hormuz Strait, calls for a wonderful concentration of the mind at policymaking levels. 

US President Donald Trump does not want to send US troops into Iran and get trapped in a prolonged war for which his voters have zero appetite, and so, he has left it to Iran to decide when to end the war.

Imperatives For India

Supply disruption has already created a shortage of LPG in import-dependent India. Commercial establishments and the poor, who do not have access to cooking gas connections and depend on mini-cylinders from the informal market, are already facing a crisis. 

The government has asked oil marketing companies to prioritise households for LPG supply. Natural gas supply for industrial use has been curtailed. Fertiliser companies that depend on gas as feedstock are shutting down for maintenance, far in advance of the normal schedule.

It is imperative that India reconfigure its fuel mix, moving away from imported hydrocarbons and towards domestic coal, and revise its fertiliser policy.

Here are three principal challenges that should not be avoided any longer. One, India should cook on electricity derived from domestic coal and renewables, not import-dependent LPG or natural gas. Two, for generating power and producing methane, India should undertake massive gasification of coal, preferably underground. And, three, the irrational demand for urea should be curtailed by removing the subsidy on the fertiliser, and partially offsetting the impact on the farmer with direct cash support.

Cooking with LPG or piped natural gas makes the elemental task of cooking food vulnerable to global price changes of oil and gas, geopolitical tensions and supply disruptions. This is entirely avoidable when electricity offers itself as a clean fuel with universal access.

Political Will For 24/7 Power Supply

Commercial eateries have already snapped up most induction cookers in the market, with the more vigilant households also joining the fray. There is a shortage of induction cookers at the moment in the country. 

Aluminium, bell-metal and ceramic cooking vessels will not work with induction cooktops: only cookware made of magnetic materials will do. This is the only drawback with induction cooktops.

Can utilities supply electricity in a reliable, stable fashion to enable households to cook whenever they want? Power supply is still erratic in many parts of the country, but that is a function of populist tolerance of power theft and subsidy not paid for by the exchequer. Telecom in India is a reliable, profitable business, so will power generation and supply be, if the politician lets it.

How about the pollution from burning coal? Do we even have enough coal to meet the additional demand for cooking exclusively on electricity?

India has an estimated 400 billion tonnes of coal. India consumes about 1.2 billion tonnes of coal, with a sixth being imported. These imports represent policy failure. 

There is no rational reason why the country with the world’s fourth or fifth largest deposits of coal should be importing coal. 

Once again, politics and the lack of ethics in the private sector are to blame.

Become An AI Expert In Just 5 Minutes

If you’re a decision maker at your company, you need to be on the bleeding edge of, well, everything. But before you go signing up for seminars, conferences, lunch ‘n learns, and all that jazz, just know there’s a far better (and simpler) way: Subscribing to The Deep View.

This daily newsletter condenses everything you need to know about the latest and greatest AI developments into a 5-minute read. Squeeze it into your morning coffee break and before you know it, you’ll be an expert too.

Subscribe right here. It’s totally free, wildly informative, and trusted by 600,000+ readers at Google, Meta, Microsoft, and beyond.

No Shortage, Government Says. But Queues At Gas Agencies Tell A Different Story.

By Shubhangi Bhatia

What?

The West Asia conflict has moved from geopolitical headlines to Indian dinner tables as the bottleneck at the Strait of Hormuz triggers anxiety for domestic LPG cylinders. To manage the panic, the government has invoked the Essential Commodities Act and enforced a 25-to-45-day booking gap.

While the Union Minister Hardeep Singh Puri said that the rush is driven by "consumer anxiety rather than any actual supply failure," the ground reality is defined by unreachable booking lines and long queues.

The Core found customers in Delhi abandoned by app glitches and switched-off service numbers.

This has sparked a frantic urban pivot: Amazon India spokesperson told The Core the company has seen a massive 30X spike in induction cooktop sales over the last few days, as families race to de-risk their kitchens from a crumbling supply chain.

Meanwhile, the Gig and Platform Service Workers Union (GIPSWU) warns of a "staggering 50–60% drop" in food delivery orders on Zomato and Swiggy as commercial cylinders begun to vanish from local eateries and restaurants.

Why?

The root of this paralysis is a precarious dependency: India imports 60% of its LPG, and close to 90% of those imports must transit the now-stalled Strait of Hormuz.

Sumit Pokharna of Kotak Securities suggests that a critical further step to reduce this supply gap will involve securing spot LPG imports from the US and other global suppliers.

While the government explores spot imports from the US, experts like CEEW’s Karthik Ganesan argue this is a structural wake-up call to move toward domestic electrification.

As the government prioritises domestic households, can the gig economy and commercial food sector survive a prolonged blockade?

3.21%

That’s India’s retail inflation in February, up from 2.74% in January, Reuters reported.

Pivot: The reading remains below the Reserve Bank of India’s 4% target and within its tolerance band of 2%-6%. But the rise signals renewed price pressures, largely driven by higher food costs and surging prices of precious metals and personal care products.

By The Numbers: Food inflation rose to 3.47% year-on-year from 2.13% a month earlier. Prices of personal care products increased 19.6%. Precious metals saw the sharpest jump, with silver jewellery prices surging 161% year-on-year and gold rising 48.2%.

Impact: Economists say global uncertainty and elevated crude oil prices linked to the Middle East conflict could push inflation higher in the coming months, even as core inflation stood at 3.4% in February.

“We expect CPI inflation to rise to 4.3% on average in fiscal 2027. While food prices are expected to remain benign, assuming a normal monsoon, food inflation is likely to continue normalising from this fiscal’s lows. We expect crude prices to average $75-80 per barrel in fiscal 2027, compared with ~$70 average per barrel this fiscal,” Dipti Deshpande, Principal Economist at Crisil, said.

India’s Hormuz Diplomacy

The West Asia conflict is beginning to test India’s diplomatic channels. New Delhi has stepped up engagement with Iran. External Affairs Minister S. Jaishankar spoke with his Iranian counterpart, urging Tehran to make exceptions for Indian tankers passing through the Strait of Hormuz.

Critical Moment: The Ministry of External Affairs confirmed the conversation but said it would be “premature” to comment further. It also said two Indian nationals were killed after merchant vessels came under fire in the region.

The Shift: The MEA added that Bangladesh has requested diesel supplies from India, joining Sri Lanka and the Maldives. Officials said India will assess domestic requirements before deciding whether it can supply fuel to neighbouring countries.

New Incentives For Phones

India plans to introduce fresh incentives for mobile phone manufacturing after its flagship production-linked incentive programme expires this month, sources told Reuters. The new policy will support global manufacturers such as Apple and Samsung and could link subsidies more closely to exports as officials try to keep investment flowing into the sector. The incentives could take effect from April, the sources said.

Catch Up Quick: The move comes as India’s role in Apple’s supply chain continues to expand. The country assembled about 55 million iPhones in 2025, roughly a quarter of Apple’s global output, as the company diversifies production away from China amid tariffs and geopolitical tensions. Smartphones also became India’s top export in 2025.

Pivot: India is keen to sustain momentum in the sector as it risks losing tariff advantages after a US court ruled that President Donald Trump’s fentanyl-related tariffs were invalid.

Bottled Water Face Cost Surge

The war involving Iran is beginning to disrupt India’s $5 billion packaged drinking water market ahead of the peak summer season, as rising oil prices push up packaging costs. Manufacturers say higher crude prices have increased the cost of polymers used in plastic bottles, along with caps, labels and corrugated boxes.

Highlight: Around 2,000 smaller bottlers have raised prices for distributors by about Rs 1 per bottle, a 5% increase, with further hikes expected, according to the Federation of All India Packaged Drinking Water Manufacturers’ Association. Retail prices, typically below Rs 20 for a one-litre bottle, have largely remained unchanged as bigger companies absorb costs.

What’s Next? However, industry officials warn that consumer prices could rise soon. Even the premium mineral water segment is seeing increases, with some brands raising reseller prices by up to 18% as input costs continue to climb.

Heatwave Warning

The India Meteorological Department has warned of rising heat stress in parts of western India as temperatures climb sharply this week.

Origin: Heatwave conditions are likely in parts of Gujarat, particularly the Saurashtra and Kutch regions, with temperatures expected to approach or cross 40 degrees Celsius. The IMD has cautioned that the hot and dry conditions could increase the risk of heat-related illnesses such as heat exhaustion and heatstroke, especially for vulnerable groups including children, the elderly and people working outdoors.

Impact: Authorities have advised people to stay hydrated, avoid prolonged exposure to direct sunlight and limit strenuous outdoor activity during the hottest parts of the day.

The warning comes even as other parts of the country are expected to see rain and thunderstorms, highlighting the sharp regional contrasts in India’s weather this week.

Go from AI overwhelmed to AI savvy professional

AI will eliminate 300 million jobs in the next 5 years.

Yours doesn't have to be one of them.

Here's how to future-proof your career:

• Join the Superhuman AI newsletter - read by 1M+ professionals

• Learn AI skills in 3 mins a day

• Become the AI expert on your team

Start learning AI now

The Markets are Not Consoled with Promises of More Oil Supplies

On Episode 821 of The Core Report, financial journalist Govindraj Ethiraj talks to Ankita Pathak, Head - Global Investments at Ionic Wealth as well as Indrani Bagchi, CEO at Ananta Aspen Centre.

• There is no end in sight to the war as all sides dig in.

• The markets are not consoled with promises of more oil supplies, globally and in India.

• Could taking a punt on a depreciating rupee work?

• Can India get safe passage for ships going through the Strait of Hormuz and what will it depend on?

• Inflation rises in February but March is what we have to wait and watch for.