India’s energy sector stays resilient amid global turmoil as diversified supplies, coal strength provide shield: S&P Global Energy

India’s energy sector remains well-positioned to absorb global market disruptions as diversified supply chains, strong domestic resources and expanding infrastructure help the country protect energy security, according to the latest analysis by S&P Global Energy.

The report highlights that despite geopolitical tensions disrupting global commodity flows, India has shown resilience across oil, power, coal and emerging digital infrastructure segments. The country’s ability to manage supply risks while preparing for future demand growth is strengthening its position in the global energy landscape.

S&P Global Energy said Indian refiners have been strategically managing risks linked to potential disruptions around the Strait of Hormuz — one of the world’s most critical oil shipping routes. While India’s near-term crisis response has been effective, the report noted that the country needs greater flexibility through diversified crude sourcing routes, stronger inventory buffers and alternative supply options.

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It added that reducing import-linked exposure remains important, particularly for LPG, where dependence on Gulf supplies continues to pose a structural challenge. A prolonged disruption could increase pressure on India’s ability to secure adequate feedstock supplies through the end of the year.

Beyond conventional energy security, India is also emerging as a major beneficiary of the global artificial intelligence and cloud computing boom. According to S&P Global Energy, power demand from India’s data centre industry is expected to grow at more than 25 per cent annually, driven by rapid digitalisation, AI adoption and cross-border cloud infrastructure requirements.

The report said India’s relatively stable power grid gives it an advantage compared with several regional peers. Lower dependence on LNG imports and continued expansion of domestic coal production have helped protect the country from volatility in global gas markets.

Coal continues to act as a strategic stabiliser for India’s energy system, ensuring reliable and cost-effective power supply during periods of international uncertainty. Despite global energy transition efforts, S&P Global Energy said coal demand in India remains resilient because of its role as a balancing fuel.

The analysis suggests that India’s combination of supply diversification, domestic energy resources and infrastructure expansion is helping the country navigate short-term geopolitical risks while supporting long-term economic growth.