Context

• The 2026 Strait of Hormuz crisis tested India's ability to withstand a major disruption in global energy supplies.
• The country's effective response demonstrated that energy security depends not only on diplomatic engagement or diversified imports but also on indigenous scientific capability, technological self-reliance, and robust industrial institutions.
• While India successfully managed the immediate crisis, achieving long-term resilience requires reducing dependence on imported fuels through domestic technological innovation.

India's Successful Crisis Management

• Refinery Flexibility and Technical Capability
  • India's response was built on decades of investment in research and development, process engineering, metallurgy, and workforce training.
  • Modern refineries developed the flexibility to process crude oil with different density, sulphur, and viscosity characteristics from multiple suppliers, including the Americas, West Africa, Russia, and West Asia.
  • Within weeks of the disruption, non-Hormuz crude sourcing increased from 55% to 70%.
  • Engineers rapidly adjusted refinery operations, optimized production processes, and maintained product quality without disrupting fuel supplies.
  • During the LPG shortage, domestic refinery output increased from 35 to 54 thousand metric tonnes per day, reflecting India's strong technical capability, engineering expertise, and accumulated institutional knowledge.
• Indigenous Capability as Strategic Insurance
  • The crisis highlighted that lasting national resilience is built on scientific capability and human capital rather than temporary geopolitical arrangements.
  • Investments in research and industrial expertise enabled India to absorb external shocks with confidence.
  • However, although crude imports can be diversified, LPG imports remain concentrated among a limited number of exporting countries, leaving a significant structural vulnerability.

From Crisis Management to Structural Reform

• Strengthening long-term energy security requires replacing imported fuels with domestic alternatives.
• Dimethyl Ether (DME), produced through coal gasification, is chemically similar to LPG and can be blended into existing cylinders and pipelines without major infrastructure changes.
• With abundant coal reserves, India possesses a significant comparative advantage. The Bureau of Indian Standards has approved blending up to 20% DME with LPG.
• Such blending could replace ~6.3 million tonnes of LPG imports annually and save nearly ₹34,000 crore in foreign exchange, while enhancing strategic autonomy and reducing exposure to global supply disruptions.

The Way Forward: Innovation Ecosystem and Policy Support

• An effective innovation ecosystem requires collaboration among research institutions, government, and industry.
• Indigenous DME technology developed by the CSIR's National Chemical Laboratory and its rapid scaling through the Centre for High Technology illustrate how scientific research can be transformed into strategic national capability.
• Recognising this potential, the Union Cabinet approved a ₹37,500 crore coal gasification programme targeting 100 million tonnes annually by 2030.
• The scheme provides financial incentives, long-term coal linkages, and policy certainty for industrial investment.
• However, challenges such as high-ash coal, limited gasification capacity, and the need for greater technical expertise require sustained investment, industrial discipline, and continuous technological advancement. 

Conclusion

• The Hormuz crisis demonstrated that indigenous capability is India's most reliable safeguard against global energy disruptions.
• Decades of investment in science, engineering, and industrial capacity enabled the country to manage an immediate crisis effectively.
• Applying the same commitment to coal gasification and DME production can reduce import dependence, strengthen energy resilience, promote innovation, and enhance India's long-term economic security and strategic independence.