Best of BS Opinion: India's energy challenge and defence export opportunity

Here are the best of Business Standard's opinion pieces for today

India’s energy vulnerability is back in focus, with over 85 per cent of crude imports exposing the economy to external shocks. The current West Asia conflict reinforces how quickly price spikes can feed into inflation and disrupt macro stability. Our first editorial argues that diversification alone is insufficient and a stronger shift to renewables is essential because expanding capacity can stabilise industrial supply, improve utilisation, and attract investment into storage and grids. But the progress until now is uneven. The share of renewables remains modest, and structural issues, especially weak discom finances and pricing distortions, continue to slow adoption. However, the transition carries employment potential, provided skilling systems and regional distribution improve. 

 

India’s defence exports have surged, rising over 60 per cent in FY26, with DPSUs driving much of the growth. Our second editorial notes that this reflects India’s attempt to move up the manufacturing value chain amid rising global demand for cost-effective military systems. Yet, the jump is partly explained by specific geopolitical deals, including Armenia’s large purchases, which may not be easily replicated. Long-term growth will depend on private sector participation. As seen in countries like South Korea, sustained export success requires deeper public-private integration, stronger trust in private manufacturers, and a shift towards exporting complete platforms rather than components. 

Meanwhile, the economic impact of the West Asia conflict is increasingly being framed in terms similar to the Covid shock. As  A K Bhattacharya writes, the comparison is rooted in fiscal stress including lower revenues, higher subsidies, and rising deficits. Early relief measures, such as fuel tax cuts, could significantly reduce government income, while higher energy costs may inflate subsidies. This risks creating a risk of fiscal slippage in FY27. However, the situation is not identical to Covid. He notes that the government has more policy space and experience. The key will be continuous reassessment of fiscal assumptions and using the disruption to push delayed reforms in areas like GST and agriculture. 

Amitabh Kant highlights that the Strait of Hormuz disruptions underline a deeper structural risk of India’s heavy dependence on imported fossil fuels. With energy imports already costing billions annually, the case for renewables is framed as strategic rather than environmental. While capacity has grown, the pace is insufficient. He calls for a sharp expansion of targets, backed by investments in storage and grid infrastructure. At the same time, new dependencies, particularly on critical minerals, must be managed through diversification and domestic capability building. 

Finally, Hilal Ahmed reviews Hamid M Ansari’s collected writings Arguably Contentious, a book that highlights a consistent framework anchored in constitutionalism. Ansari presents the Constitution as a living contract, linking nationalism to values like secularism and federalism. He also proposes evaluating political practice against constitutional ideals, treating gaps as sites for reform. Drawing from diplomacy, he extends this framework to foreign policy, arguing for an approach that balances national interest with pluralism and ethical engagement. 

Stay tuned!