India is grappling with an energy shock as crude oil prices for the Indian basket surged from $69 to $112 per barrel in March 2023. This spike, driven by geopolitical tensions in West Asia, threatens to widen the current account deficit and stoke inflation, with projections indicating a potential rise in the fiscal deficit to 4.5% of GDP if prices stabilize at $125 per barrel. The government has already implemented excise duty cuts, but these measures may not suffice to mitigate the impact of rising costs on consumers. India's strategic petroleum reserves are limited, covering only 74 days of demand, highlighting the need for improved hedging mechanisms and structural resilience in the energy sector. The ambitious goal of achieving a high-income economy by 2047 necessitates sustained real GDP growth of at least 8% annually, a challenging target in the face of current disruptions. Policymakers must adopt a proactive approach to build an economy capable of absorbing future shocks while ensuring that immediate responses do not compromise long-term growth.