New Delhi, March 24, 2026
Amid escalating geopolitical tensions in West Asia and a deepening global energy crisis, India has unveiled a major strategic initiative to safeguard its energy supply chains. Prime Minister Narendra Modi announced in the Rajya Sabha that the government has launched a ₹70,000 crore ($8.4 billion) indigenous shipbuilding program aimed at reducing reliance on foreign vessels for critical imports.
The move signals a decisive shift toward self-reliance as India seeks to shield its economy from disruptions triggered by global instability.
Government Pushes for Energy Independence
Addressing the Upper House, PM Modi emphasized that India is actively working to boost domestic LPG production while diversifying crude oil and gas sourcing.
“Reducing dependence on other countries across sectors is essential. Becoming self-reliant is the only viable path forward,” he said.
The Prime Minister highlighted that over 90% of India’s trade currently relies on foreign ships — a vulnerability that could severely impact the country during global crises.
90% Foreign Shipping Dependence Raises Strategic Concerns
India’s rapidly growing economy remains heavily dependent on energy imports, making logistics a critical national security concern.
Officials warn that disruptions in key maritime routes — particularly chokepoints like the Strait of Hormuz — could significantly affect fuel availability and prices.
To counter this risk, the ₹70,000 crore shipbuilding initiative aims to:
- Expand India’s domestic shipping fleet
- Strengthen maritime logistics resilience
- Reduce exposure to foreign-controlled transport networks
Strategic Oil Reserves and Supply Diversification
The government is also accelerating efforts to secure energy supplies through diversified imports and increased storage capacity.
According to PM Modi:
- India has created 5.3 million metric tonnes of strategic petroleum reserves over the past 11 years
- An additional 6.5 million metric tonnes capacity is currently under development
The government is sourcing oil and gas from “all available channels” to ensure uninterrupted supply amid ongoing global disruptions.
India Calls for Diplomacy in West Asia
Highlighting the broader geopolitical context, PM Modi expressed concern over the ongoing conflict in West Asia, calling for peaceful resolution through dialogue.
India has emphasized:
- De-escalation of conflict
- Ensuring open access to critical shipping routes
- Promoting diplomatic solutions among involved nations
“If the crisis continues for a prolonged period, the consequences could be severe,” PM Modi warned.
A Strategic Shift Toward Self-Reliance
The shipbuilding initiative marks a significant milestone in India’s long-term energy and economic strategy. By investing heavily in domestic infrastructure, the government aims to insulate the nation from external shocks while strengthening its global trade position.
Experts view the move as part of a broader push toward “Atmanirbhar Bharat” — reducing systemic vulnerabilities in an increasingly uncertain global environment.
