Risks of imported energy get real

If energy prices remain this high for a year, they could shave 3 per cent off India's GDP, weaken the currency

We ended the Tessellatum last November, The Energy Headwind, with a hope that the spike in energy prices would be short-lived, and would not derail India’s post-Covid recovery. Energy prices instead have increased sharply, as sanctions on Russia disrupt supplies.

India imports 36 per cent of its total and nearly half of its dense energy needs (biomass still accounts for a fourth of India’s energy supply). The value of India’s energy imports as a share of gross domestic product (GDP) is close to the highest among major economies. The ratio had peaked at around 8 per cent a decade ago