India's dependence on imported fossil fuels leaves the economy exposed to geopolitical disruptions and global price shocks. The current conflict in the Middle East has once again brought that vulnerability into focus as oil and gas prices rise.
Much of India's energy-security response understandably focuses on securing supplies and expanding domestic energy capacity. But reducing dependence on imported fuels and using energy more efficiently is another source of resilience. Electrification and fuel efficiency in transport already receive considerable policy attention. Household energy use, particularly cooking and electric appliances, has received much less attention, despite offering another significant opportunity to reduce import dependence and future electricity requirements.
The Household Energy Opportunity
Households sit at the intersection of two energy-security challenges: dependence on imported fuels and rising electricity demand. Annually, India imports 15–20 million tonnes of Liquefied Petroleum Gas (LPG) and spends around $13 billion in foreign exchange. A significant amount of LPG is used for cooking.
Households also account for 22 percent of India's total electricity consumption, with a significant share of this demand generated by relatively inefficient appliances.
These figures point to two opportunities: shifting some cooking demand from LPG to electricity, thereby reducing import dependence, and reducing residential electricity demand through more efficient appliances. The objective is not simply to reduce household electricity consumption, but to shift energy use away from imported fuels where electrification is advantageous while meeting household electricity needs as efficiently as possible. These measures could make household energy use an important demand-side component of India's energy-security strategy.
The Case for Electrifying Cooking
LPG subsidies for households may cross INR 1 lakh crore in FY2026–27 as oil and gas prices rise. Shifting some cooking demand from LPG to electricity could reduce LPG imports and exposure to international fuel prices. Over time, lower LPG consumption could also reduce subsidy requirements, although the fiscal gains would depend on electricity tariffs, subsidies and the public support required to enable the transition.
Realising these benefits will require overcoming significant barriers to adoption. Electric cooking currently has limited penetration, with high upfront costs, the cost of replacing appliances and unreliable electricity supply all limiting uptake.
Policy should therefore focus on the specific barriers preventing adoption rather than subsidising e-cooking indiscriminately. Where upfront cost is a significant barrier, the Government could consider temporary and targeted support for electric cooking appliances, particularly for households for whom the initial investment prevents an otherwise viable switch. Such support would create an additional near-term fiscal cost while LPG subsidies continue, and should therefore be targeted where it is most likely to produce durable reductions in LPG demand.
Greater demand could, in turn, help manufacturers achieve scale, lower appliance costs and encourage innovation in products suited to India's varied cooking practices and household needs. Where unreliable electricity is the binding constraint, appliance subsidies will accomplish little. Improving supply reliability must then form part of the transition strategy rather than treating financial support for appliances as sufficient.
Making Every Unit of Electricity Count
Beyond shifting cooking away from LPG, household energy security also depends on how efficiently electricity is used. A significant share of residential electricity demand is still met by relatively inefficient appliances, with many appliances rated 2 or 3 stars. Differences in efficiency can translate into substantial differences in lifetime electricity costs for households.
The National Mission for Enhanced Energy Efficiency estimates that widespread adoption of energy-efficient appliances could save India up to 300 billion units of electricity annually by 2030 and avoid the need for more than 60,000 MW of additional power capacity. Appliance efficiency therefore matters not only for household electricity bills but also for the investment required to meet future power demand.
Yet households may underinvest in efficiency because the savings accrue over time, while higher purchase costs are immediate and future energy savings may not be readily apparent. Policy can address both problems by progressively raising minimum efficiency standards and making lifetime energy costs more visible to consumers.
The Government could progressively tighten minimum energy-performance standards for major household appliances under the Bureau of Energy Efficiency's Standards and Labelling (S&L) programme. Appliances could also carry standardised estimates of annual electricity costs, while a simple point-of-sale calculator based on standard usage assumptions and applicable tariffs could help consumers compare upfront prices with expected savings over time.
Building Resilience from the Demand Side
India's experience with LPG shows that household energy transitions can accelerate when public policy addresses affordability, availability and adoption together. The same principle should now extend to electric cooking and appliance efficiency.
How households cook and how efficiently they use electricity can influence both India's exposure to imported fuels and the investment required to meet future electricity demand. Household energy policy will not substitute for supply diversification, domestic energy production or power-sector reform. But it can reduce the scale of the problem those policies have to solve. Demand-side resilience should therefore become a more explicit part of India's energy-security strategy.