Hormuz Crisis Exposes India's Energy Vulnerabilities: A Looming Economic Threat

• The Strait of Hormuz, a critical global energy artery, faces disruption, impacting 20-21 million barrels/day of crude and 25-30% of global LNG trade.
• India, importing 85% of its crude (40% from the Middle East), faces severe economic consequences due to structural dependency and limited energy redundancy.
• A prolonged disruption would trigger systemic macroeconomic impacts: high inflation, fiscal strain from reduced fuel taxes, and stunted economic growth.
• India's strategic petroleum reserves cover only 9-10 days of consumption, significantly less than China's 90-100 days, making it highly vulnerable to extended shocks.
• Beyond crude, disruptions affect LPG (60% imported, 80-90% from Middle East) and LNG, amplifying inflationary pressures across power, fertilizer, and industrial sectors.