Model Answer
0 min readIntroduction
India's burgeoning economy and developmental aspirations inextricably link its foreign policy to the imperative of energy security. As the world's third-largest energy consumer and a rapidly growing economy, India's reliance on energy imports, particularly crude oil and natural gas, remains substantial. The Middle East, with its vast hydrocarbon reserves, has historically been a critical pillar of this security, with Gulf Cooperation Council (GCC) countries meeting over 60% of India's crude oil and 70% of its natural gas import needs. This deep interdependence necessitates a sophisticated foreign policy approach that not only ensures stable supplies but also navigates complex geopolitical dynamics, regional rivalries, and the global energy transition.
Integrating Energy Security with India's Foreign Policy Trajectories
India's foreign policy in the coming years will need to dynamically integrate energy security through a combination of traditional and forward-looking strategies, balancing immediate needs with long-term sustainability goals.
1. Diversification of Sourcing and Suppliers
Reducing over-reliance on any single region is paramount. While the Middle East will remain crucial, India must actively pursue alternative sources:
- Expanded Partnerships: Strengthen energy ties with non-Middle Eastern producers such as Russia, the United States, and African and Latin American countries. For instance, increased oil imports from Russia since 2022 demonstrate this diversification in response to global dynamics.
- Long-Term Contracts: Secure long-term supply agreements with diverse global suppliers to ensure price stability and supply certainty, mitigating geopolitical risks.
- Upstream Investments: Encourage Indian Public Sector Undertakings (PSUs) like ONGC Videsh to acquire stakes in oil and gas exploration and production blocks globally, including in regions beyond the Middle East, to gain direct access to resources.
2. Strengthening Strategic Petroleum Reserves (SPR)
Enhancing domestic storage capacity provides a crucial buffer against supply disruptions and price volatility:
- Increased Capacity: Expedite the expansion of India's Strategic Petroleum Reserves. Currently, India has 5.33 Million Metric Tonnes (MMT) capacity at three locations, providing about 9.5 days of crude oil requirement (as per 2019-20 consumption). Phase II aims to add 6.5 MMT capacity at Chandikhol and Padur.
- Commercial-cum-Strategic Model: Promote a Public-Private Partnership (PPP) model for new SPR facilities to involve industry in funding and management, reducing government expenditure while ensuring national security.
3. Accelerating the Green Energy Transition and Diplomacy
The global shift towards renewable energy offers a path to long-term energy independence and diplomatic leverage:
- Ambitious Domestic Targets: India aims for 500 GW of renewable energy capacity by 2030, with 280 GW from solar. This reduces import dependence and strengthens India's negotiating position.
- Renewable Energy Diplomacy:
- International Solar Alliance (ISA): Leverage platforms like ISA to promote solar energy cooperation and technology transfer, positioning India as a leader in global energy transition.
- Green Hydrogen: Actively pursue international collaborations and investments in green hydrogen production and infrastructure under the National Green Hydrogen Mission, targeting 5 MMT per annum by 2030.
- Partnerships with Middle East: Engage Middle Eastern countries, which are also diversifying into renewables, for joint ventures in solar and wind projects, transforming the traditional buyer-seller relationship into a strategic partnership.
4. Securing Maritime Sea Lanes of Communication (SLOCs)
Given that a significant portion of India's energy imports transits through critical maritime chokepoints, safeguarding these routes is vital:
- Naval Cooperation: Enhance maritime security cooperation with regional partners and major naval powers to ensure the safety of SLOCs, particularly through the Strait of Hormuz and the Strait of Malacca.
- Regional Stability: India's foreign policy must continue to advocate for peace and stability in the Middle East and the Indian Ocean Region, as any conflict directly impacts energy flows.
5. Strategic Partnerships and Regional Connectivity
Engaging the Middle East beyond hydrocarbons to foster broader strategic alignment:
- Comprehensive Economic Partnerships: Expand Free Trade Agreements (FTAs) and Comprehensive Economic Partnership Agreements (CEPAs) with GCC nations (e.g., India-UAE CEPA 2022) to deepen trade and investment beyond energy.
- Connectivity Initiatives: Actively participate in and promote initiatives like the India-Middle East-Europe Economic Corridor (IMEC) to enhance trade, energy, and digital connectivity, creating new economic arteries.
- Defence and Security Cooperation: Strengthen defence and security dialogues and exercises with Middle Eastern partners to address shared threats and contribute to regional stability.
By pursuing these integrated strategies, India can navigate the complexities of global energy markets, bolster its energy security, and enhance its geopolitical influence in the coming years.
Conclusion
Energy security will continue to be a cornerstone of India's foreign policy, especially given its projected highest energy demand growth globally by 2035. The future trajectory involves a nuanced approach: maintaining robust, yet diversified, engagement with traditional hydrocarbon suppliers in the Middle East while aggressively pivoting towards renewable energy sources. This strategy, underpinned by enhanced strategic reserves, maritime security, and strategic economic partnerships, will not only ensure a stable and affordable energy supply but also elevate India's global stature as a responsible power committed to sustainable development and climate action. This dynamic integration will allow India to convert energy vulnerabilities into opportunities for enhanced geopolitical influence and long-term resilience.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.