NEW DELHI: India has widened its crude-oil sourcing base to 43 countries from 27 to reduce exposure to geopolitical shocks while remaining integrated with the global economy, said P. K. Mishra, principal secretary to Prime Minister Narendra Modi.
The diversification reflects a broader approach to economic security, Mishra said at the Kautaliya Economic Conclave 2026 in New Delhi. Resilience, he said, is not about eliminating dependence on other countries, but avoiding excessive concentration in any one source.
“For example, the number of countries from which we import crude oil has increased from 27 to 43,” Mishra said, calling the expansion significant for India’s energy security.
The strategy assumes importance as India relies on imported crude for nearly 90% of domestic demand, leaving the economy exposed to geopolitical disruptions, shipping risks and swings in global oil prices.
The diversification comes as the West Asia war, which flared up again in August and September, pushed crude prices to nearly $100 a barrel. Before the war, prices were at $65 a barrel.
On Friday, Brent crude on the Intercontinental Exchange ended at $102.25 a barrel. An increase of around $1 a barrel a year could raise India’s annual import bill by ₹18,000 crore, according to estimates by Bank of Baroda.
India imported $123.37 billion worth of crude oil in fiscal year 2026 (FY26), down from $137 billion in the previous year.
Mishra said the larger meaning of ‘atmanirbharata’ was not an economy that needs no one, but one that can withstand disruption and adapt to change. Wars, trade disruptions, volatile energy prices and artificial intelligence are creating new sources of uncertainty, he said.
“Atmanirbhar Bharat is not about being self-contained or being close to the world. It is about being self-sustaining and self-generating. In a world price at risk, this may ultimately be the most durable form of economic security-not an economy that needs no one, but an economy that can withstand disruption, adapt to change, and create value that the world itself cannot do without,” Mishra said.
The same principle applies to critical minerals, energy and manufacturing, Mishra said.
Critical minerals needed for the global energy transition are held in “very few hands”, creating the potential for countries to weaponize control over them, he said. India’s response is to combine domestic capability where vulnerabilities are strategic, diversification where concentration creates risks and openness where global integration improves productivity and competitiveness.
“Greater domestic capacity in renewables, nuclear energy storage, and associated technologies is not only about sustainability; it is also about reducing exposure to external shocks over time,” Mishra said.
The National Critical Minerals Mission is aimed at strengthening domestic exploration, processing and recycling, while India has partnerships with the US, France, Germany and the Netherlands covering exploration, processing, recycling, technology and supply-chain resilience.
Mishra said resilience had to be balanced against efficiency: global supply chains can deliver cost advantages, while concentrated sources can leave economies vulnerable to disruption. Domestic capabilities should therefore be competitive, scalable and eventually export-oriented rather than simply replacing imports.
Electronics illustrates the approach. Production rose from around ₹2 trillion in FY15 to about ₹13 trillion in FY26, while exports increased from around ₹38,000 crore to ₹4.24 trillion.
The policy focus is also moving beyond assembly towards components and a deeper manufacturing ecosystem, with similar efforts in semiconductors, pharmaceuticals and other strategic sectors.
India has also expanded its trade-agreement network, including with the United Arab Emirates, Australia and EFTA, and more recently the UK, Oman and New Zealand.
“An open economy will always depend on other economies. The objective is not to eliminate that dependence, but to avoid excessive concentration,” he said.
Mishra linked resilience to macroeconomic strength, including fiscal space, adequate foreign-exchange reserves, a sound financial system and credible institutions.
India has continued fiscal consolidation while maintaining public investment. The fiscal deficit, which rose to more than 9% of GDP during the pandemic, is budgeted at 4.3% of GDP in FY27.
Resilience comes at a cost, Mishra said: strategic reserves must be financed, alternative suppliers may be more expensive and domestic capacity can initially cost more than imports. But such costs can be justified where disruption carries a large economic and social cost.
“Where a disruption can impose a very large economic and social cost, investing in resilience can be economically rational,” Mishra said.
