India Sees Chance to Cut Energy Imports as World Has Too Much Fuel Supply

India Sees Chance to Cut Energy Imports as World Has Too Much Fuel Supply

December 17, 2025

India is being presented with a very limited chance to cut down on its importation of fuel in the wake of the global fuel markets showing some signs of looming oversupply in the area of liquefied natural gas (LNG) and solar parts. This development will aid the Indian government in its mission to be more self-independent when it comes to fuel.

A recent analysis by Bridge to India underlines that the decline in international costs associated with the major energy inputs like solar photovoltaic (PV) modules and the availability of LNG resources are impacting the energy policies in India. Changes within the Indian policy frameworks related to the preferential use of local production of solar PV modules in government and open access projects have significantly decreased the costs associated with the establishment of solar power projects. On the other hand, the international glut in the production of LNG has kept the costs associated with fuel low.

According to the report, the historic cost reductions in solar PV costs in some of the large manufacturing destinations in other countries have led to lower costs in terms of capital spending involved in solar energy in India. 

A surplus in gas has come about in the international gas market as a result of the increased liquefaction capacity in the market, which may present lower gas prices to the likes of India in the international LNG market. This situation is welcome news to the Indian government as it looks to increase its gas requirements.

Analysts explain that this synergy between worldwide overcapacity and Indian domestic policies might be instrumental in bringing down the cost of fuel imports in the country, at the same time as it aids in developing the clean energy sector.