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GS3Economy · S&T · Environment · Security· External sector, trade & FDI· Mains·
Why in news
The Economic Times highlighted India's vulnerability to prolonged Middle East oil disruptions due to heavy reliance on regional crude imports and limited storage capacity.
Background
India and China are the two largest energy consumers in Asia. India's limited storage capacity makes it more vulnerable to supply shocks compared to China's robust inventory buffer.
Facts for Prelims
- FactIndia and China are identified as the two largest energy consumers in Asia.
- FactIndia's vulnerability to Middle East oil disruptions is linked to limited storage capacity.
For Mains
Q. Analyze the structural vulnerabilities in India's energy security posed by regional geopolitical instability and suggest measures to diversify import sources.
Dimensions to cover in your answer
- Infrastructure gap: Limited domestic storage capacity exacerbates vulnerability to sudden supply-side shocks
- Geopolitical risk: High dependence on Middle Eastern crude creates a strategic bottleneck for industrial growth
- Diversification trade-offs: Balancing the cost of diversifying import sources against the risk of regional price volatility
Keywords: Energy Security · Supply Chain Vulnerability · Strategic Autonomy · Inventory Buffer · Geopolitical Risk
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.