For India, the energy challenge is urgent, step up to it

📌 Summary:

• Context: The US war on Iran and the sharp fall in the rupee have prompted a rethink of the structural weaknesses in the Indian economy
• Core argument: The rupee's fall is not the problem itself but a symptom - the deeper weakness is India's high and rising dependence on energy imports
• Austerity measures (working from home, conserving energy) are at best a short-term fix; on returning from a five-nation tour, PM Modi reviewed the economy and asked ministers to urgently explore alternative energy sources
• Why energy matters: an economy aiming to quadruple average incomes over 20 years needs far more energy - per capita electricity consumption rose 46% between 2013-14 and 2023-24
• Key data on import dependence: coal supplied nearly 79% of domestically supplied energy in 2024-25 yet net coal import dependency is over 23%; crude oil import dependence is almost 90% (up from 85% a decade ago); natural gas is 50% (up from 40%)
• India's paradox: it holds one of the world's largest coal reserves yet has seen steadily rising coal imports over the last decade
• Renewables progress: India ranks 4th globally in renewable energy installed capacity, 4th in wind power and 3rd in solar power capacity - but much more must be done, fast
• Solutions proposed: diversify energy production and sourcing to cut import dependence; shift cooking from imported gas to electricity produced from domestic sources; radically improve public transport to reduce dependence on cars

🎯 UPSC Relevance: GS3 (Economy / Infrastructure / Energy Security) - energy import dependence as a macroeconomic vulnerability, the energy-currency linkage, energy transition and demand-side management.

📝 Prelims Facts:

• Coal accounted for nearly 79% of India's total domestically supplied energy in 2024-25
• Crude oil import dependence is about 90% and natural gas about 50%
• India ranks 4th in renewable energy installed capacity, 4th in wind power and 3rd in solar power capacity
• Per capita electricity consumption rose 46% between 2013-14 and 2023-24

🔑 Key Term: Net energy import dependency - an indicator that measures the extent to which a country relies on imports to meet its energy requirements.