The Confederation of Indian Industry (CII) on Thursday called for a coordinated national response to India’s emerging “3Fs” challenge: fuel, fertiliser, and food.
The call comes as the West Asia crisis sends ripples through global and domestic markets, driving up energy and fertiliser prices, logistics costs, food inflation, and currency volatility.
“The 3Fs are not three separate pressures,” said Chandrajit Banerjee, CII Director General. “Fuel feeds into fertiliser, fertiliser feeds into food, and all three feed into inflation, fiscal stress, and household welfare. That is why we should treat this as a single, integrated economic challenge. It makes navigating external shocks much easier.”
This interdependence stems from India’s heavy import reliance on fuel and fertiliser. Government data show India imports about 88% of its crude oil, 90% of its phosphates, and 25% of its urea.
A significant share of these crude and LNG shipments transits the Strait of Hormuz, so geopolitical developments in West Asia have immediate ramifications. These go beyond energy and fertiliser security and increasingly affect the broader economy through higher living costs and second-round effects on food prices.
CII said the government’s early response has been reassuring. “CII acknowledges that the government has moved quickly and responsibly, cushioning consumers from the initial fuel price spike and channelling gas to critical sectors.
“From here, we believe a few calibrated short-term steps, along with strong structural reforms, would serve India well. Global uncertainties are likely to persist, and India’s growth and stability can be further strengthened through long-term reforms, with some medium-term action as well,” Banerjee said.
Fuel is the primary point of exposure to external shocks, but it also offers the most immediate opportunity to cut India’s import dependence. To do this, CII recommends using the newly notified BIS standards for higher ethanol blends, E22 to E30, and setting a clear roadmap for their market rollout.
This should be backed by fast-tracking flex-fuel vehicles in high-supply ethanol-producing states where the production ecosystem is strongest.
CII also called for a national framework for long-haul LNG trucking, with vehicle incentives, refuelling corridors, and transparent pricing, to unlock a cleaner domestic fuel option for freight. It suggested gradually shifting a portion of LPG demand to sustainable domestic alternatives, including electric and ethanol-based cooking, and green hydrogen where viable.
For long-term structural resilience, CII emphasised accelerating domestic oil and gas exploration, expediting the expansion of Strategic Petroleum Reserve, and diversifying crude import sources. This should be paired with expanding new energy avenues such as coal gasification, methanol blending, bio-CNG, and nuclear power, including Small Modular Reactors (SMRs).
“Boosting efficiency and scaling up home-grown alternatives are more than near-term fixes. They form the very bedrock of India’s long-term economic security,” Banerjee noted.
