In a world grappling with energy insecurity and economic upheaval, India’s External Affairs Minister S. Jaishankar has underscored the urgent need for the nation to forge a wide-ranging and diverse network of energy relationships.
Speaking at the Business Today event in Mumbai on March 22, Mr. Jaishankar framed this strategy as essential for the world’s fifth-largest economy to navigate an increasingly volatile global landscape.
A Strategic Imperative
‘The fifth biggest economy of the world must necessarily develop a broad and diverse set of energy relationships,’ EAM Jaishankar declared, emphasizing that this approach is not just a choice but a necessity for India’s future.
He pointed to the country’s diplomatic efforts to secure a favorable energy environment, extending beyond traditional fossil fuels to include ambitious investments in renewable energy and cutting-edge technologies like small modular reactors. This multifaceted strategy, he argued, is vital to ensuring energy security for decades to come.
Mr. Jaishankar’s remarks come at a time when global energy markets are reeling from the aftershocks of the Ukraine conflict, which began in 2022 and continues to disrupt supply chains.
Reflecting on India’s response to that crisis, he noted, ‘A policy decision that has significant economic implications in recent years was our assertion of energy choices in the aftermath of the Ukraine conflict. The truth was every nation did what was in their self-interest, even though some professed otherwise.’ This candid observation alluded to India’s decision to increase oil imports from Russia despite Western criticism—a move that stabilized domestic energy prices while highlighting the pragmatic streak in New Delhi’s foreign policy.
Diplomacy in Action
India’s embassies, once primarily focused on political outreach, are now pivotal players in advancing the nation’s commercial interests, the Minister said. ‘They inform, advise, and facilitate wherever possible to ensure that our businesses do well,’ he said, signaling a shift toward a more proactive economic diplomacy.
This approach has borne fruit in recent trade negotiations, including free trade agreement (FTA) talks with the United Kingdom and the European Union, a bilateral trade agreement (BTA) with the United States, and the launch of FTA negotiations with New Zealand—all of which Minister Jaishankar cited as examples of India’s expanding global engagement.
The minister also highlighted India’s unique geopolitical positioning, noting that it is among the few nations capable of simultaneously engaging with Russia and Ukraine, Israel and Iran, the democratic West, the Global South, BRICS, and the Quad. This balancing act, he suggested, enhances India’s leverage in securing diverse energy partnerships.
Beyond Fossil Fuels
While fossil fuels remain a cornerstone of India’s energy mix, Minister Jaishankar stressed the importance of diversifying into renewables and innovative technologies.
India’s leadership in the International Solar Alliance and its push for large-scale solar and wind projects exemplify this commitment. Additionally, the small modular reactors—compact nuclear power units—could position India as a pioneer in next-generation energy solutions, reducing reliance on volatile global oil markets, according to Mr. Jaishankar.
The minister’s vision aligns with India’s broader economic goals. With industrial policies, export controls, and tariff wars reshaping globalization, Jaishankar argued that a diversified energy strategy would bolster trade, innovation, and security in food and health—sectors increasingly intertwined with energy policy. ‘A large economy like India needs an overall strategy,’ he said, urging a holistic approach to these interconnected challenges.
Global Context and Local Impact
Mr. Jaishankar’s comments resonate amid a shifting global order.
The Ukraine conflict exposed vulnerabilities in energy supply chains, prompting nations to reassess their dependencies. India’s decision to maintain energy ties with Russia, coupled with its outreach to Gulf nations and renewable energy partners, reflects a calculated effort to avoid over-reliance on any single source. Meanwhile, domestically, the government’s focus on infrastructure—evident in projects like the Gati Shakti initiative—aims to support this diversification by enhancing logistics and manufacturing capacity.
As of March 23, 2025, India’s energy imports remain robust, with crude oil from Russia accounting for a significant share, alongside growing investments in solar and wind capacity. Analysts see the Minister’s remarks as a signal of intent: India is poised to play a larger role in shaping global energy dynamics, leveraging its diplomatic agility to secure a sustainable future.
