APSC Answer Writing (Daily) based on Assam Tribune – 20/05/2026
For APSC CCE and other Assam Competitive examinations aspirants, practicing Daily Answer Writing is vital. This blog covers the most important Main question and its model Answer from the Assam Tribune today (20-05-2026).
GS Mains Model Question (APSC CCE)
Question
“India’s heavy dependence on imported crude oil makes its economy vulnerable to global geopolitical shocks.”
Discuss the impact of rising fuel prices on the Indian economy in the context of the Strait of Hormuz crisis. Suggest measures to strengthen India’s long-term energy security.
(250 words)
Model Answer
India’s economy remains highly dependent on imported crude oil, with nearly 85% of its petroleum requirements sourced from abroad. Consequently, geopolitical tensions in West Asia, particularly around the Strait of Hormuz, significantly affect India’s economic stability and energy security.
The Strait of Hormuz is one of the world’s most critical maritime chokepoints through which a substantial share of global crude oil trade passes. Any disruption in this region leads to sharp increases in global oil prices.
Impact on Indian Economy
1. Inflationary Pressures
Higher fuel prices increase:
- Transportation costs,
- Food prices,
- Manufacturing expenses,
leading to cost-push inflation.
2. Current Account Deficit (CAD)
Expensive crude imports widen India’s import bill and adversely affect the trade balance.
3. Fiscal Stress
Governments may face pressure to:
- Reduce fuel taxes,
- Increase subsidies,
which impacts fiscal stability.
4. Industrial & Agricultural Impact
Rising diesel and energy costs affect:
- Logistics,
- Irrigation,
- Industrial production.
5. Currency Pressure
Higher import expenditure can weaken the rupee and reduce foreign exchange reserves.
Measures to Strengthen Energy Security
- Expansion of renewable energy and green hydrogen,
- Diversification of oil import sources,
- Strengthening Strategic Petroleum Reserves (SPR),
- Promotion of electric mobility and biofuels,
- Improving public transport and energy efficiency.
Conclusion
The Strait of Hormuz crisis highlights the close relationship between geopolitics and economic stability. For India, achieving long-term energy security requires a balanced strategy combining renewable energy transition, strategic reserves, diversified imports, and sustainable infrastructure development.
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