Inside India’s response to the global helium shortage

In today’s episode on 29th April 2026, we talk about the global helium shortage and how India is navigating it. Book a FREE call with Ditto https://ditto.sh/vx51ji

• 0:01Speaker 00

  Hello folks, you're tuned into Finchart's Daily. In today's episode, we talk about the global helium shortage and how India is navigating it.

• 0:11Speaker 00

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• 0:53Speaker 00

  A few days ago, Union Bank of India released a report on the prolonged closure of the state of Hormuz due to war and how it could reprise global risk because of rising oil and gas prices. The report said that disruption in Hormuz have pushed oil prices above hundred dollars per barrel up from a stable level of around seventy dollars before the war. That somehow feels like an energy tax on India's economy since we import nearly eighty-five percent of our crude oil. But while everyone is talking about oil price rises and inflation, there's one thing fewer people are talking about and that folks is helium.

• 1:31Speaker 00

  Helium is an inert gas, which means it's an introvert and does not react readily with other substances. And while you might not realize it, many of the products and processes you use every day depend on helium. For instance, every electronic device you use today has helium in its origin story. That is, it helps make the tiny chips that power your smartphones, laptops and TVs. Plus, when you buy something at a supermarket, helium neon lasers and barcode scanners read your items during checkout. Helium also helps inflate your car's airbags in case of crashes. It is used to dry fiber optic cables during production. Faster internet and of course it's the gas that fills your party balloons.

• 2:14Speaker 00

  But the world is slowly running out of this useful gas. We spoke about this exactly a year ago, but back then, things weren't as bad as they are today. As a war in the Middle East has disrupted the global supply chain of helium as well. For context, Qatar supplies about thirty percent of the world's helium, most of which comes from its Ras Lufan facility, the world's largest liquefied natural gas plant. But after attacks on its gas infrastructure, it was forced to stop production and supply of LNG and related products even to contracted customers. And LNG is where helium comes from. It is formed over very long periods through the natural decay of uranium, antorium and rocks, and then gets trapped in some gas reservoirs.

• 2:56Speaker 00

  Producers can only recover it economically when natural gas contains enough helium to make separation worthwhile. And despite being inert and seemingly harmless, there are two things about helium that are quite scary. First, helium is scarce on earth and is non-renewable resource. Second, it is so light that it's difficult to store as a gas because it can easily leak into the atmosphere and escape into space. So naturally, exporting helium isn't simple. It requires highly specialized cryogenic containers to keep it extremely cold at around minus two sixty-nine degrees centigrade during transport. Anything above that and liquid helium slowly boils off even in insulated containers.

• 3:38Speaker 00

  That's why it has to be transported and used or stored in proper reserves within about four to six weeks. Beyond that, the boil of losses can exceed fifty percent, making it economically unwiable to use. So you can imagine what's happening to shipments stuck at sea. As Iran has partially blocked the Strait of Hormuz, allowing very few ships to pass through one of the world's busiest shipping routes through which Qatar exports both natural gas and helium. All of this is affecting global helium access, especially in Asia, where semiconductor manufacturing accounts for a large share of demand. The gas is used in chip manufacturing processes for cooling and for flushing out contaminants from VAFers. Now, we know what you think. Qatar isn't the world's largest helium supplier.

• 4:23Speaker 00

  That crown belongs to the US and US helium doesn't pass through the state of Hormuz. So why worry? Well, the issue is that Qatar's sudden disruption creates an outsized impact. Its production is concentrated in a single major facility and is heavily export dependent. So any shutdown can remove a significant chunk or about fourteen percent of global supply at once. The US, on the other hand, has production spread across multiple states and facilities with a stronger domestic focus. Also, the US government officially sold off the last of its national helium reserve in twenty twenty four, shutting down a federal stockpile that once held about thirty percent of the world's helium. So while the government no longer maintains a strategic reserve,

• 5:06Speaker 00

  large privately held supplies still exist, by the way, mainly in Texas and Wyoming. Which means that as supply titans and prices rise, access increasingly depends on who can pay more and afford it. That's a big challenge for a country like India, which imports hundred percent of its helium needs. India consumed about three point four million cubic meters of helium in twenty twenty five. That's only about two percent of global consumption, but over fifty percent of India's imports traditionally come from Qatar, which itself accounts for roughly a third of global helium exports. And even though India is not yet a major semiconductor manufacturing hub, the helium shortage affects it in two big ways. First, India wants to become a global player in semiconductor and electronics manufacturing.

• 5:48Speaker 00

  But the helium shortage is pushing up costs in the sector by thirty five to fifty percent. It has also extended chip lead times to about twelve weeks and delayed the commissioning of new fabs and OSATs, that's outsourced semiconductor assembly and test, even if it hasn't caused complete shutdowns. And since helium has no real substitute and India typically holds just seven to ten days of inventory, you can imagine the impact. It could slow down India's semiconductor ambitions. Second, helium is widely used in India's healthcare systems, especially in MRI machines. These machines offer a non-invasive way to see inside the body in detail, especially soft tissues like the brain, muscles, ligaments and organs. Unlike X-rays and CT scans, they don't

• 6:30Speaker 00

  Use radiation. Instead, they rely on magnetism and radio waves to create images. Inside every MRI machine, there is a powerful superconducting magnet. But this magnet doesn't work that way naturally. It needs to be cooled to extremely low temperatures to become superconducting. That's where liquid helium comes in. It's one of the few substances cold enough to make this possible. Once cooled, the magnet creates a strong and stable magnetic field. This interacts with hydrogen atoms in your body, which behaves like tiny magnets. Their responses are then used to generate detailed images. Without regular helium refills, hospitals can't run MRI machines effectively. And that's already showing up in rising costs as helium prices have increased sharply over the last few weeks.

• 7:13Speaker 00

  In some cases, hospitals may even have to prioritize only emergency scans. So, yes, these are the two key sectors where helium demand in India is expected to grow. Potentially at around eight percent each year, especially with the AI-driven semiconductor push. But repairs at Raslafan could take three to five years. So, how can India manage this crisis, you ask? Well, at least in the short term, things can be manageable even with low inventories. If we're talking about healthcare, most MRI scanners in India now use zero boil-off technology, which recycles helium and doesn't need frequent refills. These machines come with an initial charge of liquid helium and typically need refilling only once every four to 10 years. But newer machines will cost more, so expansion in smaller towns and rural areas could become a challenge.

• 7:56Speaker 00

  In the long term, India will have to diversify its supply with multi-origin contracts, including from Russia, the US, and emerging suppliers from South Africa and even Tanzania. Because the reality is that India doesn't have commercially viable helium reserves, while natural gas fields in West Bengal and Jharkhand have shown small traces of helium below 0.2 percent. Extracting it economically is still difficult. Domestic production could be five to 10 years away and very expensive, making it viably uncertain. So for now, recycling and alternate supply routes are our only real options until Raslafan is fixed and the state of Hormuz reopens. And when that will happen is anyone's guess. All right, folks, I will see you in the next one.

• 8:39Speaker 00

  Thank you for listening to today's episode. And if you want to share your feedback or suggestions, do drop us an email to [email protected]. Until next time.