India says its expanding economic strength and diversified energy strategy are helping the country withstand the global oil market turbulence triggered by conflict in the Middle East.
With crude prices climbing above $100 a barrel and shipping disruptions raising concerns about global energy supplies, officials in New Delhi say the world’s fourth-largest economy has sufficient fuel reserves and contingency plans to maintain stability in domestic energy markets.
Commerce and Industry Minister Piyush Goyal said India currently holds adequate fuel stocks and has not experienced disruptions to domestic supplies. Speaking at the CNBC-TV18 India Business Leaders Awards 2026, he said the government had prepared measures to manage volatility in global energy markets.
“On crude oil and fuel we are pretty well placed. We have good stocks in hand and there has been absolutely no disturbance on the crude or fuel front — petrol, diesel or aviation fuel,” Goyal said.
He added that kerosene production has been increased to ensure that vulnerable households continue to have access to affordable energy if global price pressures intensify.
India’s economic growth has strengthened its ability to respond to external shocks. The country’s nominal GDP is estimated at about $4.18 trillion in 2025, making it the fourth-largest economy globally. Growth is projected at about 8.2 percent, keeping India the fastest-growing major economy and placing it on track to surpass Germany and Japan in the coming years.
The government has also introduced additional fiscal measures to prepare for global uncertainty. Finance Minister Nirmala Sitharaman recently announced a $6.2 billion economic stabilisation fund aimed at cushioning the economy from crises such as rising energy prices linked to the Middle East conflict.
“It enables us to absorb economic shocks of various nature without deviating from the fiscal consolidation path,” Sitharaman told lawmakers while seeking approval for supplementary spending.
India relies on imports for nearly 90 percent of its crude oil needs, leaving the country exposed to global price swings. Oil prices have risen sharply amid concerns that conflict in the Middle East could disrupt shipments through critical maritime routes.
In recent years, however, India has taken steps to strengthen its energy security. These include diversifying crude supply sources, expanding strategic petroleum reserves and increasing renewable energy capacity to reduce reliance on imported fossil fuels.
Indian refiners have also continued purchasing discounted crude from Russia following adjustments in international sanctions, helping ease pressure on domestic fuel prices and the trade balance.
Authorities have so far kept petrol and diesel prices stable to limit the immediate impact of global price increases on inflation.
At the same time, policymakers are considering additional support measures for exporters affected by disruptions linked to the conflict. Officials are discussing steps similar to those introduced during the Covid-19 pandemic, including extended deadlines for repatriating overseas earnings, relaxed banking rules for exporters and temporary loan repayment relief.
India’s economic fundamentals remain strong. Goods and Services Tax collections reached a record ₹2.17 trillion ($26 billion) in April 2025, reflecting strong consumption and improved tax compliance.
Financial markets have also expanded rapidly, with mutual fund assets under management exceeding ₹80 trillion ($960 billion). Total foreign direct investment inflows into India have surpassed $1.15 trillion, highlighting continued investor confidence.
The country’s digital economy is also growing quickly. The Unified Payments Interface platform now processes transactions exceeding ₹21 trillion ($252 billion) each month, strengthening financial inclusion and digital commerce.
Large infrastructure projects and renewable energy expansion have also supported growth, with non-fossil fuel sources now accounting for more than half of India’s installed power capacity.
Economists say these structural strengths are helping India navigate the global uncertainty created by the oil shock, even as higher energy costs pose challenges for many other major importing economies.
