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Saturday, 11 July 2026

INDIAN ENERGY SECURITY FOR TRASPORTATION SECTOR WAY AHEAD

 

 

  • In 2026, the US–Iran war shut the Strait of Hormuz for 3.5 months.

  • India managed well: no petrol rationing, cooking gas cylinders kept arriving, and alternative suppliers were quickly tapped.

  • However, if the crisis had lasted longer, India’s margin for error would have collapsed.

  • Lesson: India must build resilience beyond short-term fixes — by reducing dependence on imported fuel.

⚡ Strategic Case for Electrification

  • India imports 88% of crude oil (worth $137 billion annually).

  • Transport and cooking consume most of this, yet both can shift to electricity.

  • Example: Switching households from LPG cylinders (90% imported) to induction stoves powered by domestic coal/renewables.

  • Even partial electrification could reduce the current account deficit significantly.

  • Electrification is not just economic — it’s strategic security.

🔧 Four Technology Deficiencies

1. Solar Cells

  • India has strong solar module assembly capacity but weak upstream capabilities (polysilicon, wafers, cells).

  • Relies on foreign-licensed designs (Chinese, Korean, Norwegian).

  • Research funding is minimal compared to deployment spending.

  • Talent exists (IIT Bombay tandem cell breakthrough), but no commercial-scale indigenous technology yet.

2. Battery Cells

  • Nearly 100% of lithium-ion cells are imported.

  • Domestic schemes delivered only 2.8% of targets by late 2025.

  • Patent gap: Indian firms hold 7 patents vs. China’s CATL with ~50,000.

  • Current efforts rely on foreign recipes and materials — “rented capability.”

3. Electrical Steel

  • India produces large volumes of steel but not the special grades needed for transformers and EV motors.

  • Imports ~350,000 tonnes of grain-oriented electrical steel annually.

  • Without this, India cannot build the grid for electrification.

  • A Nashik project may help by 2028, but demand will already outpace supply.

4. Machines and Materials

  • Factories depend on imported equipment and feedstock.

  • Solar cell machines mostly Chinese; polysilicon and battery materials largely imported.

  • Even “Indian” factories remain hollow without control over core technology.

🏭 Why Factories Are Hollow

  • India’s subsidy schemes reward production volume, not technological progress.

  • Licensed foreign designs meet subsidy rules as easily as indigenous innovation.

  • Result: Large-scale factories, but little ownership of technology.

  • Contrast: China tied subsidies to rising efficiency and patents, forcing firms to innovate.

📈 The Way Forward: A 10-Year National Project

  • India needs a technology-driven industrial policy:

    • Subsidies tied to moving technology targets (efficiency, patents, equipment localization).

    • Dedicated research funding (e.g., ₹2,000 crore annually for solar R&D).

    • Support for startups and outsiders, not just conglomerates.

  • Goal: Build indigenous capacity in solar cells, battery chemistry, and special steels.

  • Without this, India risks shifting dependence from imported oil to imported clean-tech.

✅ Conclusion

India handled the Hormuz crisis well, but the deeper challenge is technological dependence. True energy independence requires owning the machinery of the energy transition — not just assembling foreign designs. The next decade must be treated as a national mission, with rising technology bars, research investment, and support for innovators beyond the big industrial names.

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