Energy security is the most important part of economic progress of India Analyse India's energy policy co-operation with West Asian Countries

Energy is like the blood that runs in the body of a nation’s economy. Without energy, industries cannot work, transport cannot move, agriculture cannot grow, and technology cannot develop. For a country like India, which is one of the fastest-growing economies in the world, energy security has become one of the most important parts of its overall economic progress.

Energy security means that a country should have reliable, affordable, and sustainable access to energy resources like oil, natural gas, coal, and electricity. If there is a shortage of energy, the economy slows down, inflation rises, and people face hardships. Therefore, India needs strong policies to make sure that its energy demand is fulfilled without interruption.

we will understand why energy security is so important for India’s economic progress, how India’s energy demand is growing, and how West Asian countries (commonly known as the Middle East) are playing a vital role in helping India achieve its energy goals.

Importance of Energy Security for India’s Economic Progress

1.Industrial Growth
India is rapidly industrializing. Sectors like steel, cement, automobiles, and textiles require a continuous supply of power and fuel. Without energy, factories cannot run and exports will fall.

2.Transport and Mobility
India has one of the largest networks of roads, railways, and air routes. All these depend heavily on petrol, diesel, and aviation fuel. If there is an energy crisis, transport costs will rise and affect common people.

3.Agriculture
Farmers use electricity and diesel for irrigation, tractors, and machines. A shortage of energy can hurt food production and increase food prices.

4.Urbanisation and Lifestyle
Cities are expanding, and with them, the demand for electricity in households, offices, shopping malls, and hospitals is increasing. Energy security is needed to meet this growing demand.

5.Technology and Digital Economy
India’s new economy depends on data centers, internet, and communication systems. All these require stable power. Without energy, the dream of Digital India cannot be achieved.

6.National Security
If India depends too much on foreign countries for energy and those supplies get disrupted due to wars or political reasons, it will harm India’s security.

India’s Energy Scenario

India is the third-largest energy consumer in the world after the US and China. The demand is increasing every year due to population growth, industrialisation, and urbanisation.

·        Oil Demand: India imports more than 85% of its crude oil needs.

·        Natural Gas: Around 50% of natural gas is imported in the form of LNG (Liquefied Natural Gas).

·        Coal: India has large coal reserves but still imports high-quality coal for industries like steel and power.

·        Renewable Energy: India is expanding solar, wind, and hydro energy, but they are not enough to replace oil and gas in the near future.

This shows that India is highly dependent on energy imports, especially oil and gas. Most of these imports come from West Asian countries.

Why West Asia is Important for India’s Energy Security

West Asia, also known as the Middle East, is one of the richest regions in terms of oil and natural gas. Countries like Saudi Arabia, Iraq, Iran, UAE, Kuwait, and Qatar have some of the largest energy reserves in the world.

For India, West Asia is important because:

1.Proximity: Geographically, West Asia is close to India, which makes transportation of oil and gas easier and cheaper compared to other regions.

2.Large Reserves: Most of the world’s oil reserves are located in this region.

3.Reliable Partners: Despite political conflicts, many West Asian countries have been reliable suppliers of energy to India.

4.Strategic Relations: India shares strong historical, cultural, and trade ties with the region, which helps in strengthening energy cooperation.

India’s Energy Policy and Cooperation with West Asian Countries

India has designed its energy policy in such a way that it ensures long-term cooperation with West Asia. Some key aspects are:

1. Diversified Oil Imports

·        India imports oil mainly from Iraq, Saudi Arabia, UAE, and Kuwait.

·        Iraq has become India’s largest oil supplier, followed by Saudi Arabia.

·        This diversification ensures that if one country faces political problems, India can rely on others.

2. Natural Gas from Qatar

·        Qatar is the largest supplier of LNG (Liquefied Natural Gas) to India.

·        Indian companies like Petronet LNG have long-term contracts with Qatar to ensure steady supply.

3. Investments in Oil Fields

·        Indian companies like ONGC Videsh have invested in oil fields in countries such as Iran, Iraq, and UAE.

·        This gives India some direct control over resources.

4. Strategic Reserves

·        India is building underground oil reserves in states like Karnataka and Andhra Pradesh.

·        Much of the oil stored here comes from West Asia.

·        These reserves can help India during emergencies like wars or sudden price hikes.

5. Renewable Energy Cooperation

·        India is also working with West Asian countries on renewable energy, especially with UAE and Saudi Arabia.

·        This cooperation helps in reducing over-dependence on fossil fuels.

6. Defense and Security Cooperation

·        Safe transport of oil through sea routes like the Strait of Hormuz is very important.

·        India has increased naval cooperation with West Asian countries to secure these sea lanes.

Challenges in Energy Cooperation with West Asia

While West Asia is vital for India’s energy security, there are some challenges too:

1.Political Instability
Many West Asian countries face wars, conflicts, and political tensions. For example, conflicts in Iraq, US-Iran tensions, and instability in Yemen can affect energy supplies.

2.Dependence Risk
Too much dependence on West Asia makes India vulnerable. If supplies are blocked, India’s economy will suffer badly.

3.Price Volatility
Oil prices in West Asia fluctuate due to OPEC decisions, global demand, and conflicts. This creates inflation in India.

4.US Sanctions on Iran
India used to import a large amount of oil from Iran, but due to US sanctions, those imports have reduced. This limits India’s options.

5.Competition from China
China is also heavily dependent on West Asian oil and has invested much more than India in the region. This competition sometimes makes it difficult for India to secure favorable deals.

Steps India is Taking to Ensure Energy Security

1.Diversification of Sources

o   Apart from West Asia, India is also importing oil and gas from Africa, Russia, and the US to reduce risk.

2.Renewable Energy Push

o   India has set a target of achieving 500 GW of renewable energy by 2030.

o   Solar energy is being developed on a large scale to reduce dependence on imports.

3.Energy Efficiency

o   India is working on reducing wastage of energy through efficient appliances, electric vehicles, and better technology.

4.Strategic Reserves Expansion

o   More underground reserves are being built so that India can store oil for 60-90 days.

5.Hydrogen Energy

o   India has launched the National Hydrogen Mission to develop green hydrogen as a future fuel. Some West Asian countries are also partners in this mission.

Energy security is indeed one of the most important parts of India’s economic progress. Without sufficient and affordable energy, India cannot achieve its goals of industrial growth, social development, and global competitiveness.

West Asian countries play a central role in fulfilling India’s energy needs. From oil and gas supplies to investment and cooperation in renewable energy, the relationship between India and West Asia has become very strong. However, India also faces challenges like political instability in the region, price fluctuations, and growing competition.

Therefore, India’s energy policy focuses not only on strengthening ties with West Asian countries but also on diversifying sources, developing renewable energy, and building strategic reserves.

In the coming years, India’s balanced approach—cooperation with West Asia along with energy diversification—will ensure that the country remains energy secure and continues its journey towards becoming a major global economic power.