What challenges does India face in balancing its energy needs with international sanctions?

India’s energy demand is rapidly growing due to its large population and expanding economy. To meet these needs, India relies heavily on imported oil and gas. However, international sanctions, particularly on countries like Russia and Iran, pose significant challenges for India as it tries to secure affordable and reliable energy supplies.

• Dependence on Imports: India imports over 80% of its crude oil needs. Any disruption due to sanctions can threaten energy security and economic stability.
• Limited Alternatives: Diversifying suppliers is not always feasible, as alternatives may be more expensive or less reliable than sanctioned countries like Russia or Iran.
• Rising Costs: Sanctions can drive up global oil prices, increasing India’s import bill and leading to inflation and fiscal stress.
• Diplomatic Pressures: India faces pressure from Western countries, especially the US and EU, to reduce or stop imports from sanctioned countries, complicating foreign policy decisions.
• Geopolitical Balancing: India must balance its strategic partnerships with both the West and countries like Russia, which supply crucial energy resources.
• Payment and Logistics Issues: Sanctions often restrict banking channels and shipping insurance, making transactions and transportation of oil more complicated.
• Energy Transition Challenges: While India is investing in renewables, the transition is gradual, and immediate needs still depend on fossil fuels, making it hard to quickly reduce dependence on sanctioned suppliers.