Question

Discuss the implications of rising tension between Iran and the USA on India. What measures India should take for protecting its energy security and interest in West Asia.

Answer 1

Approach:

• In brief provide recent developments in US-Iran relations as context.
• Mention implications of rising tension on India.
• What measures India can take to secure its strategic interest
• Provide Conclusion based on arguments provided.

The US pulled out of a nuclear deal alleging it defective at its core, setting off the escalation between these two countries. The US has imposed economic sanctions to squeeze Iranian Economy. Recently there is attack on US drones and oil tankers. All these incidents have caused war like situation in West Asia.

Implications on India:

1. Economy: Rising tension will affect the supply of Oil to India and inflationary pressure on Indian Economy will increase. There is concern regarding the job security of Indian diaspora living in these west asia countries.
2. Energy Security: India is dependent on imports for its almost 80% of oil needs. such tensions in the strait of hormuz can disturb oil and natural gas supplies to India . So it will threaten the energy security of the Country.
3. Connectivity with Central Asia: With India wanting to make inroads into central Asia through Chabahar port, international north south corridor , ashgabat agreement , Iran has substantial role to play for India’s connectivity with Central Asia. Turmoil in Iran will affect the India’s Central Asia Policy. Central Asian Country can be potential supplier of Energy sources to India.
4. Afghanistan: to maintain trade and ties with Afghanistan in which huge investment has been made by India .It needs the support of Iran as envisaged under chabahar port to overlook Pakistan hostility.

Measures By India:

1. Diversification of Energy Sources : India should diversify its oil energy demand to different countries like the USA and different African Countries. India should diversify its energy basket and more focus on exploitation of renewable energy.
2. Alliance with like minded countries like Japan and China which are also dependent on West Asia for oil supply.
3. Promotion of Buffer stocks as it act as strategic oil reserve and tackle the oil crisis for temporary period.
4. Promoting the policy of equal distance with US and Iran : As both the countries are important for strategic interest of India. So, diplomatic channel should remain open for negotiation with both the countries.

Way Forward:
India should adopt the policy of equal distance between US and Iran. Along with this India should diversify its energy sources.