An external member of the Reserve Bank of India’s Monetary Policy Committee says India should prioritise energy security to protect economic growth from shocks. Nagesh Kumar, director of the Institute for Studies in Industrial Development, links the need to India’s structural exposure to energy disruptions, noting that the conflict in West Asia has highlighted the country’s vulnerability to volatility in global energy markets.
Kumar argues that reducing reliance on imported crude is critical because high import dependence makes the economy susceptible to fluctuations in hydrocarbon prices. He also says India should pursue a two-track approach: increase domestic oil exploration while simultaneously accelerating the transition to alternative energy sources. In his view, this combination would strengthen resilience and help sustain momentum in growth.
He adds that India’s macroeconomic fundamentals remain resilient, and forecasts continued strong expansion, characterising India as the fastest-growing major economy with growth of nearly 7% in 2026-27. Overall, his remarks emphasise energy security as a policy priority to support the broader economic growth outlook.
