India needs to retain choices on where to source its energy needs

Right now, best way forward for India is to have multiple sourcing deals

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The transition to using greener energy sources will be incremental. India cannot afford to rush this process, nor can it cut options for less costly oil sourcing.
The transition to using greener energy sources will be incremental. India cannot afford to rush this process, nor can it cut options for less costly oil sourcing.
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In recent discussions, questions have been raised about the sources of India’s crude oil imports. Such views often simplify what is, in reality, a complex issue.

India’s choices are guided by the pressing need to ensure energy security for its people, support its developmental priorities, and remain consistent with its broader commitment to responsible global engagement.

For India, energy security is not an abstract concept but a pragmatic necessity. As the world’s third-largest consumer of oil, with demand projected to rise steadily, India’s economic growth and social development depend heavily on affordable and reliable energy supplies. Indian refiners often turn to the most viable options available, not out of ideology but practicality, driven by competitive pricing and assured availability at a time of global uncertainty.

Access to such supplies has helped stabilize inflation, ensured steady fuel availability, and maintained momentum in India’s growth story. This is a matter of national interest and basic economic prudence.

Equally important is India’s consistent tradition of strategic independence. India has resisted alignment with any one bloc, choosing instead a path of balanced engagement with all global partners. This principle continues to shape its approach to energy procurement. Imports are not about endorsing geopolitics but about ensuring resilience in a fragmented and often volatile energy market.

India’s decisions are guided by responsibility to its citizens and its role as a stable contributor to the global economy.

Transition to green will be gradual

It is also crucial to understand that these short-term choices do not undermine India’s long-term commitment to sustainability. India has made some of the most ambitious pledges among developing nations in the fight against climate change. It has committed to net-zero emissions by 2070 and aims to source half of its power capacity from renewables by 2030.

The country is already home to the world’s largest renewable energy expansion programme, investing in solar and wind at scale, and pioneering green hydrogen and battery storage. India’s leadership of the International Solar Alliance underscores its intent to not only transform its own energy mix but also help other countries accelerate their transition.

India’s approach is also reflected in its energy partnerships, especially with the UAE. The UAE has emerged as one of India’s most important partners in both traditional and renewable energy.

Indian firms have invested in UAE oil assets, while Emirati companies are contributing to India’s strategic petroleum reserves. Beyond hydrocarbons, the two nations are collaborating on solar projects, green hydrogen initiatives, and infrastructure for clean energy. This partnership demonstrates that India’s energy strategy is not a narrow pursuit of short-term advantage but a balanced engagement with trusted partners to ensure stability today and sustainability tomorrow.

Yet, no transition can be instantaneous, particularly in a country where hundreds of millions still rely on affordable energy to secure their livelihoods. Fossil fuels, including oil, will remain an important bridge as India builds the infrastructure and capacity for a greener future.

India is being practical

This is not a contradiction but a practical pathway, balancing the immediate need for economic stability with a long-term vision for sustainability.

What India seeks is not criticism but constructive collaboration. Rather than focusing narrowly on sources of current oil imports, the global community can benefit more by working with India on the shared challenge of clean energy.

Greater investment, technology transfer, and cooperation in areas such as renewable deployment, efficiency, and carbon capture will accelerate progress in ways that are equitable and inclusive. India has repeatedly shown that it is ready to engage in such partnerships and is already contributing significantly to global climate efforts.

India’s reliance on diverse energy supplies, then, is not an ideological choice or a statement of foreign policy alignment. It is a sober, pragmatic decision shaped by developmental needs, global price fluctuations, and the imperative to protect its citizens from economic shocks.

Rishi Suri
Rishi Suri
Special to Gulf News
Rishi Suri
Special to Gulf News

The writer is a commentator on Indian economic and business issues.

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