India's Energy Sector Resilient Amid Global Shifts, Says S&P Global

S&P Global Energy reports India's energy sector is resilient amid global shifts, using diversified supply and domestic resources. The nation is securing its energy needs while preparing for rising demand from AI and the digital economy.

India's energy sector is demonstrating resilience amid ongoing geopolitical uncertainties and shifts in global commodity markets, supported by diversified supply chains, strong domestic energy resources and infrastructure readiness, according to S&P Global Energy.

In its latest analysis, S&P Global Energy said India is successfully safeguarding energy security while positioning itself to meet rising demand from emerging sectors such as artificial intelligence (AI) and cloud computing.

Navigating the Oil Market

According to the report, a common trend across oil, power, data centres and coal markets is India's focus on strengthening long-term energy security while supporting future economic growth.

On the oil front, S&P Global Energy noted that Indian refiners have been tactically navigating disruptions around the Strait of Hormuz to maintain domestic fuel security and preserve refining margins. However, the report stressed the need for greater optionality through diversified crude import routes, deeper storage and inventory buffers, and alternative supply arrangements to reduce import-linked vulnerabilities.

"India's crisis management has worked in the near term, but a prolonged disruption limits complacency, particularly in securing sufficient feed through the end of the year," said Premasish Das, Executive Director and Head of Downstream Oil Research - Asia, Middle East, Africa and CIS at S&P Global Energy.

Powering the Digital Boom

Beyond fuel security, the report highlighted India's growing role in the global data centre industry. Data centre power demand in the country is expected to expand by more than 25 per cent annually, positioning India as a strategic destination for AI workloads and cross-border cloud infrastructure.

Jenny Yang, Global Head of Power and Renewables Research at S&P Global Energy, in her analysis "Powering the Digital Boom", said India's power grid has remained comparatively stable due to lower dependence on liquefied natural gas (LNG) imports and continued support for domestic coal production.

Coal as a Strategic Stabilizer

The report further underscored the role of coal in ensuring energy stability. Despite fluctuations in global gas prices, coal demand has remained resilient, helping provide a cost-effective foundation for India's power system.

Pritish Raj, Senior Manager, APAC and EMEA Thermal Coal at S&P Global Energy, in the report "Coal as a Strategic Stabilizer", said coal continues to serve as a critical balancing fuel and remains a key pillar of India's energy security framework.

S&P Global Energy said India's ability to combine diversified energy sourcing, domestic resource development and infrastructure expansion is helping the country navigate global volatility while supporting long-term economic and digital growth. (ANI)

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