Preparing for disruption
Following will be the impact of US blockade in Iran. We need to review and figure out impact on India and more importantly common citizen. If LPG petrol and diesel are mot available or in shortage how do we operate ?
1) Energy Disruption through Gulf will be compounded. Forcing India to look further afield at costlier energy supplies.
2) LNG Vulnerability:
40–55% of India’s LNG imports pass through Hormuz. Gas supply constraints will hit power, fertilisers, and city gas distribution. It's going to become worse.
3) LPG (Cooking Gas) Exposure will deepen. 90% of 60% imported
LPG is imported via Hormuz. Direct pressure on household cooking fuel and subsidy burden.
4) U.S., Venezuelan oil availability despite Trump claims won't soften global oil prices. Inflation risk in India looms.
5) External Account & Rupee Pressure as import bill rises sharply
Current account deficit widens.
6) Petrochemical and manufacturing costs rise.
7) Diaspora & remittance risk
8–9 million Indians live in the Gulf. Hormuz blockade compounds impact on Gulf economies jeopardising Indian diaspora jobs that are a source of $bn100 annual remittances. Remittance flows to India could weaken more
1) Energy Disruption through Gulf will be compounded. Forcing India to look further afield at costlier energy supplies.
2) LNG Vulnerability:
40–55% of India’s LNG imports pass through Hormuz. Gas supply constraints will hit power, fertilisers, and city gas distribution. It's going to become worse.
3) LPG (Cooking Gas) Exposure will deepen. 90% of 60% imported
LPG is imported via Hormuz. Direct pressure on household cooking fuel and subsidy burden.
4) U.S., Venezuelan oil availability despite Trump claims won't soften global oil prices. Inflation risk in India looms.
5) External Account & Rupee Pressure as import bill rises sharply
Current account deficit widens.
6) Petrochemical and manufacturing costs rise.
7) Diaspora & remittance risk
8–9 million Indians live in the Gulf. Hormuz blockade compounds impact on Gulf economies jeopardising Indian diaspora jobs that are a source of $bn100 annual remittances. Remittance flows to India could weaken more
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When we depend upon outside resources, we should expect such problems any time. We should convert this crisis into an opportunity and look for other alternatives to reduce our dependence on other countries. We should increase installation and use of solar panels for which central government is offering a lot of support. For house hold cooking we should use induction cookers and direct solar cookers. May be this industry of roof top solar cookers should pick up this opportunity and flourish. Composting gases could be used for cooking which will improve waste management and produce natural fertilizer. There is a technology available to produce batteries from sea water. We should use this technology to produce electricity. Instead of lamenting over our own mistake of over dependence on others, let us think out of the box and put our one billion brains together and find our own solutions to our problems. Narayanan K more
Apr 16
There is good news:Shell steps up LNG supplies to India, wins major fertiliser tenders after Gulf disruptions Read more at: https://economictimes.indiatimes.com/industry/energy/oil-gas/shell-steps-up-lng-supplies-to-india-wins-major-fertiliser-tenders-after-gulf-disruptions/articleshow/130204142.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst more
Apr 13
This is no doubt a crucial period for the people o the entire world. It all depends on how the governments act. I think in the the external and trade ministry is doing its best to ease the siyuation for us. It is here that the politicians should irrespective of the party should co ordinate and work. more
Apr 13
