India’s energy policy cooperation with West Asian Countries.
Energy
security has long been a concern for the India, a global giant/huge in oil
consumption. The fuel demands are growing fast in proportion to its rapid economic
development. Oil and natural gas are expected to remain India’s main sources of
energy in the coming two to three decades, and India needs to steadily/gradually
increase and secure energy supplies for high economic growth.
India
has seen the West Asia as a commercial relationship, mainly driven by flows of
energy. Yet major changes in global, regional, and even internal West Asian
politics especially the Israel factor, demand for a new interpretation of the
strategic importance of West Asia to India. No one can deny the importance of
India’s relationship with Israel, particularly for military support, technology
transfer, agricultural and irrigation development and now renewable energy. In
this complex scenario, India is trying to woke the tight rope of cultivating a
multi-dimensional partnership with Israel while also ensuring that its energy
requirements are met from resource rich countries in West Asia. Therefore, it’s
important to understand India’s strengths and weaknesses in dealing with
countries of West Asia and to come up with suggestions for the government to
frame a holistic engagement strategy.
India’s growing energy
demands
Indian
economy is witnessing one of the fastest economic growth in the world. Reaching
any level of energy security is an epic mission for a nation where, more than
288 million citizens live without electric supply, or under the “energy poverty
line” conferring to the International Energy Agency.
Secondly,
oil and natural gas, which is the second most central source that subsidizes to
India’s energy mix, the nation has not been blessed with plentiful reserves of
crude oil unlike many other regions in the world. But the demand for oil and
gas has already beaten domestic production since decades ago due to its
economic and population rise. Even though few minor reserves of oil were
discovered in the state of Rajasthan later, the lack of abundant oil and
natural gas reserves have forced India to look abroad to satisfy its starvation
for energy, mainly oil. Today, India imports more than 80 percent of its oil
needs.
Looking forward to the
future
Now
West Asian countries are looking forward to develop closer ties with the huge
energy market. India recently made many notable triumphs / achievement in its
relations with West Asia including the strategic Chahbahar Port in Iran, closer
ties with Israel, etc. India is now also looking forward to cooperate more with
the West Asian states including Israel in a multi dimensional way. At the same
time India is now trying to reduce its dependency to the West Asian region by
diversifying its energy sources to other parts of the world including Africa
and Latin America. In this situation of hope, India can carry forward these
actions to enhance its energy security strategy and ensure continuous energy
flow-
1.
India should hire more human
resources in foreign countries including West Asian region to ease the
policymaking process.
2.
Intensification of direct investments in
West Asian energy resources, both at the public and private sector levels.
3.
Enhance energy cooperation with other
Asian countries like China, Japan, South Korea etc. Form a cooperative
partnership to ensure continuous energy flow to the region.
4.
Develop closer ties with countries like
Iceland, Israel etc. to develop India’s renewable energy technology and to
backup with an alternate way other than oil and natural gas.
5.
Work to sign more defence treaties on
bilateral (such as agreements with signed with Qatar and Saudi Arabia etc.) and
institutional levels (such as GCC). And make sure to include energy as a
strategic asset in this agreement.
6.
Look forward to diversify its energy
sources to African, Latin American and other energy rich countries to secure
its energy security.
7.
Promote the public and private companies
to invest in oil rich regions in the world and promote them to get hold of
untapped energy resources around the world.
Energy security is
the major factor which drives India’s relations with West Asia. In the
foreseeable future, India can act in the ways explained above to take its West
Asian strategy forward and ensure its energy security to feed its exponentially
developing economy. For the likely future, the West Asian region is expected to
continue as an important region for India’s energy security. To enhance its
energy projections, India will have to fetch systemic changes in its political,
bureaucratic, economic and strategic outlooks towards the region to reap the
benefits of closer cooperation and to ensure its energy security.
