India is the world’s 3rd largest energy consumer, importing over 85% of its crude oil and 55% of natural gas. The Middle East accounts for nearly 60% of India’s crude imports.
Energy Security is dominant kingpin of India’s foreign policy due to
India’s energy demand is projected to double by 2040 (IEA). Energy diplomacy is central to India’s economic growth and geopolitical outreach.
Geopolitical Risks – Instability in West Asia (Iran-Israel tensions, Strait of Hormuz) threatens supply chains.
Price Volatility – Fluctuating global oil prices widen India’s current account deficit.
US sanctions on Iran, Venezuela, Russia limit India’s diversification options
China’s aggressive investments in overseas oilfields and LNG projects crowd out India. Eg- in Africa
Infrastructure Gaps – Limited strategic petroleum reserves, LNG terminals, and pipelines.
Integrating Energy Security with India’s Foreign Policy
A. Short-Term Measures (2025-2030)
Diversification of Suppliers- Expand sourcing from US, Russia, Africa, and Latin America.
Expand Strategic Petroleum Reserves capacity from 5.3 MMT to 10 MMT.
Chabahar & INSTC Connectivity- Use Iran-Central Asia corridor to secure overland energy routes and bypass chokepoints.
Maritime and Energy Diplomacy- Strengthen cooperation with UAE, Saudi Arabia, and Oman for logistics bases and secure sea lines of communication.
Financial Resilience- Develop Rupee-based oil trade and local currency settlements to cushion against dollar volatility and sanctions.
B. Long-Term Measures (2030-2050)
“Nearshoring” energy supplies and greening the Indian grid under Neighbourhood First policy. Eg- hydropower projects in Nepal
Review of Civil Liability for Nuclear Damage Act and Atomic Energy Act for FDI in civil nuclear power.
Green Energy Partnerships-
Collaborate with Gulf nations on green hydrogen, solar parks, and carbon capture (India-UAE Green Energy Corridor).
Promote India as a global hub for renewable technology and green financing.
Energy Investments Abroad-
Scale ONGC Videsh and IOCL investments in upstream oil and gas fields in Iraq, UAE, Mozambique, and Russia.
Establish a Sovereign Energy Investment Fund for strategic acquisitions.
Critical Minerals Diplomacy- Partner with CAR and African nations for lithium, nickel, and cobalt supply chains.
Institutional Integration- Create an Energy Diplomacy Wing within MEA for coherent foreign policy alignment.
“Energy security is not just about fuel, it is about strategic autonomy, and India’s foreign policy must secure both.” – M.K.Narayanan