In the 21st century, the world faces new challenges, which threaten the sustainability and stability of the global system. Energy commodities shortage that appeared due to limitations of the economic potential of our planet and the growing demand for energy resources, is one of the most important problems of our time. Under such conditions, the role of energy security increases significantly.
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The Delhi Solar Agenda
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Opportunities for India in Central Asia |
India’s current trade with Central Asia is minimal – just about $1.5 billion which is a mere 0.11 per cent of India’s overall trade. India’s trade is largest with Kazakhstan, with a turnover of USD 1,032.81 million in 2017-2018. |
Uzbekistan is a distant second at USD 234.39 million in the same year. But the complementary aspects of Indian and Central Asian economies mean that the potential for trade is extremely high. |
After experiencing a complete breakdown in the manufacturing sector, supply of raw materials and lack of markets, Central Asian states are fast getting linked to the global market for production, supplies of raw materials and services. However, the changing economic environment – prolonged recession in Europe, financial crisis in Russia, fall in oil prices, etc – is opening new vistas of opportunities for the Central Asia-India trade partnership to grow. |
India’s imports mainly include precious and semi-precious stones, chemicals, iron and steel, machineries, mineral oils, copper goods, plastic goods, wool, and leather. Exports items include coffee, tea and spices, apparel and clothing (both knitted and not knitted), pharmaceutical products electrical and mechanical equipments. |
Several areas present excellent opportunities for Indian investment and cooperation in Central Asia such as hydro-power sector, mining and metallurgical industries, construction industry, development of entrepreneurship, infrastructure, agro-industrial sector, information technology, pharmaceuticals industry, silk, sewing and textile industries, leather industry, tourism industry, higher education, food processing sectors, etc. |
Energy security is, doubtless, a key priority of the foreign policy of India, as the national reserves of energy commodities are scarce. The growing energy needs of India essentially define and will define the nature of its relations with other countries, as India is actively using foreign policy to conduct its energy policy and its provide energy security.
Current Energy Policy of India
Energy Consumption
As per the report on Energy Statistics 2018-
Imports and Exports
Renewables Energy
A century ago, Sir Winston Churchill recognised that ‘safety and certainty in energy lies in variety and varietyalone.’ Energy diplomacy goals should crucially go beyond engaging energy partners and must include India’s entire neighbourhood, both immediate and extended.There are several economic challenges to India’s energy security - demand and supply issues, gas pricing issues, high costs of installing power plants, inefficient allocation of resources, need for reform, and challenge of deregulation and (over) dependence on imports are just some of these.
Politics of Energy Security
Security & Self-sufficiency
Dependence on Imports
Neighbourhood Policy Crucial to Energy Security