As India's GDP demonstrates consistent year-on-year growth, reaching 6 to 7 percent, the nation's potential for sustained economic expansion is undeniable. However, this growth also brings with it a significant surge in energy demand, making energy security a crucial imperative. Separately, India has also committed to growing the renewable energy sector and achieving net-zero emissions by 2070, reflecting its dedication to combating climate change.

According to a McKinsey report, although renewable energy production has doubled worldwide over the past decade, its contribution to total primary energy consumption has only increased from 9 percent to 13 percent. The demand for energy has surged by 14%, primarily driven by emissionsintensive sources, resulting in a 5 per cent increase in energy-related emissions (equivalent to 1.7 Gt of CO2). Alarmingly, fossil fuels continue to dominate the energy mix, maintaining an unchanged share of 82 per cent in primary energy consumption.

India can perceive these circumstances as challenges or as incentives to fast-track its journey towards net zero while simultaneously ensuring energy security. Presently, India holds a significant position as a global energy player in terms of production and consumption. The manner in which India balances its energy security with net-zero objectives and shapes its energy policy will have implications not only for India but will also have a global impact.

India has formulated a comprehensive energy security strategy with four key dimensions, as outlined by the government: 1) Diversifying energy supplies, 2) Expanding exploration and production capabilities, 3) Exploring alternate energy sources, and 4) Transitioning towards a gas-based economy, green hydrogen and EVs. Coal remains the primary source, contributing to 44 per cent of India's total energy consumption, followed by petroleum and other liquids at 24 per cent. Natural gas constitutes 6 per cent of the overall energy mix. Given that India relies on imports for 85 per cent of its oil needs and 50 per cent of its natural gas requirements, there is a clear emphasis on enhancing domestic exploration and production. However, the energy security strategy also highlights a strong focus on
transitioning to renewable energy sources and ultimately achieving the country's net-zero objectives. This is evident through various government policies and recent initiatives such as reducing the limit for green energy open access and the announcement of the $2.63 billion grid battery subsidy scheme, which underscore the nation's commitment to this focus.