The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries.

GS 2
International Relations
2017
15 Marks

Subject: International Relations

India's energy security cooperation with West Asian countries has evolved from mere buyer-seller relationships to comprehensive strategic partnerships, underpinning the nation's economic growth trajectory and energy security imperatives. The recent Qatar-India 20-year LNG agreement (2024) securing 38% of India's LNG imports highlights the deepening energy ties with the region.

Strategic Energy Partnerships

  • Long-term Supply Agreements:

    • Strategic agreements with Saudi Arabia and UAE ensure steady oil supplies for India's growing energy needs.
    • The Qatar LNG deal (2024) demonstrates India's commitment to diversifying its energy mix through long-term partnerships.
  • Upstream Investments:

    • ONGC Videsh (OVL) has made significant investments in oil fields in Iraq and UAE.
    • BPCL's stakes in Abu Dhabi fields strengthen India's energy security through direct participation in production.

Renewable Energy Cooperation

  • Solar Energy Initiatives:

    • Joint investments with UAE in solar farms promote clean energy transition.
    • Collaboration on renewable technology development enhances India's clean energy capabilities.
  • Future Fuels:

    • Partnership with Saudi Arabia on hydrogen fuel development.
    • Focus on sustainable energy solutions aligning with India's climate commitments.

Economic Integration

  • Trade Agreements:
    • The India-UAE CEPA facilitates broader economic cooperation beyond energy.
    • Enhanced trade relationships support India's energy security objectives.

Challenges and Way Forward

  • Import Dependence:

    • India's crude oil import dependence stands at 87.7% (2023-24).
    • Expected oil import bill of $101-104 billion in FY25 (ICRA estimates).
  • Diversification Strategy:

    • Reducing dependence on traditional suppliers (West Asian share decreased from 34% to 23% in FY2024).
    • Expanding renewable energy partnerships to reduce fossil fuel dependency.

The transformation of India's energy cooperation with West Asia through initiatives like 'Link West' policy and strategic partnerships with UAE, Saudi Arabia, and Qatar demonstrates a comprehensive approach to ensuring energy security while promoting sustainable development. The focus on both conventional and renewable energy sources provides a balanced pathway for India's energy future.

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