6 min readMar 27, 2026 06:07 AM IST First published on: Mar 27, 2026 at 06:07 AM ISTThe turbulence in West Asia is a reminder of a structural reality that India has long grappled with: Energy insecurity is not episodic; it is systemic. For a country that imports over 85 per cent of its crude oil, geopolitical volatility is not an external risk. Every disruption in supply chains, every spike in oil prices and every escalation in regional conflict creates inflation, fiscal pressure, and current account stress. But such crises also present opportunities. India has the scale, the policy momentum, and the entrepreneurial capacity to convert this vulnerability into a decisive advantage.The challenge must be used to redesign India’s energy architecture. First, India must accelerate its renewable energy (RE) ambition and move from incrementalism to scale. India’s existing target of 500 GW of RE by 2030 was bold when announced. Today, it’s no longer sufficient. A revised target of 1,500 GW by 2030 is both necessary and achievable. This pertains to both climate commitments and energy sovereignty. In 2025, China added almost 1,600 GW in clean energy (solar and wind), whereas India added a mere 49 GW.AdvertisementTo enable this increased target, procurement mechanisms must be strengthened. Central agencies must aggregate and contract at least 200 GW+ annually, complemented by aggressive state-level procurement. Renewable purchase obligations and renewable consumption obligations must be expanded and strictly enforced.Grid infrastructure must, therefore, be treated as a national priority. Renewables-rich states such as Gujarat, Rajasthan, Karnataka, and Tamil Nadu require high-capacity transmission corridors that are seamlessly integrated with storage systems. RE management centres must be expanded and their capability to manage intermittency enhanced. Last year, over 50GW of energy capacity remained stranded due to a lack of evacuation and over 35GW is likely to be curtailed this year. Storage is equally critical. Battery energy storage systems and pumped hydro storage must be deployed in a mission mode. Every renewable tender going forward must mandate storage integration. Storage should be classified as a core RE asset and the GST on it should be brought down.Second, India must rethink energy consumption at the household level. LPG has played a transformative role in improving health outcomes and reducing indoor pollution. But it is import-dependent. Electric induction cooking offers a pathway to shift household energy consumption towards clean power. This transition requires scale and strategy. Prices of induction cooktops can be reduced through demand aggregation, replicating the success of the UJALA programme. The database of Ujjwala beneficiaries provides a ready platform for targeted distribution.AdvertisementThird, transport electrification should become a national economic strategy. India must announce a clear and time-bound roadmap: Full electrification of new two-wheelers and three-wheelers by 2030, buses in the near term, and cars and trucks by 2035. Electrification cannot succeed without fixing the battery ecosystem. The Production Linked Incentive (PLI) scheme for advanced chemistry cells has not succeeded and must be urgently restructured. Underperformance must be addressed, timelines rationalised, and credible global and domestic players brought in. Charging infrastructure must be scaled across urban and highway networks. This requires coordination across central, state, and municipal levels, supported by clear standards and viable business models.Fourth, nuclear energy must be scaled as a long-term backbone of India’s energy mix. Renewables and storage will form the bulk of future capacity. But nuclear power provides the firm, non-intermittent supply that is essential for grid stability. India’s ambition to reach 100 GW of nuclear capacity by 2047 is strategic and necessary. Small modular reactors offer a scalable pathway. With the enabling policy now in existence, the priority must be to operationalise the reforms by starting bidding for projects and creating a predictable pipeline. Private-sector participation, global partnerships, and streamlined regulatory processes will be critical.Fifth, India must build end-to-end capabilities in critical minerals. The challenge is not just access to raw materials, but also processing and refining. Today, global supply chains are heavily concentrated, creating strategic vulnerabilities. India must develop domestic processing capabilities at scale. This will require assured offtake mechanisms, price support frameworks, and long-term contracts that provide certainty to investors. Strategic partnerships with resource-rich countries must be deepened, not just for extraction but for integrated value chains. Equally important is human capital. Training programmes at leading institutions must create a pipeline of skilled professionals in mineral processing, battery chemistry, and advanced manufacturing.Sixth, and this is where India’s current discourse remains underdeveloped — the country must position itself as a clean energy manufacturing hub. Solar modules, batteries, electrolysers, grid technologies and green hydrogen represent the next wave of global manufacturing.India must leverage its scale, policy incentives, and domestic demand to attract and build world-class manufacturing ecosystems. PLIs must be aligned across sectors, logistic costs reduced, and export competitiveness enhanced.you may likeSeventh, financing the transition must become a core strategic priority. India must deepen its green finance ecosystem, including green bonds, blended finance structures, and sovereign-backed risk mitigation instruments. India’s renewable sector has attracted private capital from across the world. This was feasible because of predictable policies and actions through the Solar Energy Corporation of India. Similar policy frameworks are necessary across sectors to enable the private sector to attract capital and technology. Domestic financial institutions must be incentivised to lend to clean energy projects. Multilateral development banks and global climate funds must be leveraged more effectively. Carbon markets can play a catalytic role if designed with integrity and scale.Finally, execution must be anchored in institutional coordination and accountability. India has demonstrated its ability to deliver at scale, whether through digital public infrastructure, financial inclusion, or RE deployment. Energy transition now requires a similar whole-of-government approach. The turbulence in West Asia is a warning. But it is also a window. The choices made today will determine whether India remains vulnerable to external shocks or becomes a nation that shapes its energy destiny.The author is chairman, Fairfax Centre for Free Enterprise. He is former CEO, NITI Aayog. Views expressed are personal