India Must Diversify Energy Ties as Global Economy Shifts, Says Jaishankar
India, as the world’s fifth-largest economy, must prioritize building a wide-ranging and varied network of energy partnerships, External Affairs Minister S Jaishankar emphasized during a Business Today event on Saturday. Speaking in the context of a world increasingly shaped by industrial policies, export restrictions, and tariff disputes—challenges that contrast sharply with decades of globalization rhetoric—he underscored that securing a stable energy future is a cornerstone of India’s diplomatic strategy.
Jaishankar highlighted that this effort goes beyond traditional fossil fuels, encompassing the large-scale development of renewable energy sources and the exploration of small modular reactors. “The fifth biggest economy of the world must necessarily develop a broad and diverse set of energy relationships,” he reiterated, stressing the need for a multifaceted approach.
He also pointed to the evolving role of Indian embassies, which have become more proactive in advancing the nation’s commercial interests. These diplomatic outposts now play a key role in providing information, guidance, and support to ensure Indian businesses thrive on the global stage, he explained.
Reflecting on recent geopolitical events, Jaishankar noted that India’s energy decisions following the Ukraine conflict demonstrated a pragmatic assertion of national interest—a move that drew criticism from some Western quarters for its oil imports from Russia. “The truth was every nation did what was in their self-interest, even [though] some professed otherwise,” he said, highlighting the complex realities of global energy politics.
India’s unique position allows it to engage simultaneously with opposing players like Russia and Ukraine, Israel and Iran, as well as broader groupings such as the democratic West, the Global South, BRICS, and the QUAD, Jaishankar observed. BRICS fosters cooperation among major emerging economies, including India, while the QUAD unites Australia, India, Japan, and the United States in a strategic partnership.
In today’s environment of shifting economic policies and trade barriers, Jaishankar argued that nations must adapt by identifying emerging trends and leveraging their strengths. He addressed growing global concerns about economic vulnerabilities, suggesting that solutions lie in diversifying manufacturing, boosting innovation and technology, and strengthening trade—particularly in areas tied to food and health security.
“Put together, what this means is reglobalisation that is fairer, more democratic, and less risky than its earlier model,” he said, noting that a reordering of global supply chains and economic flows is underway. India, he added, must position itself to maximize the opportunities this shift presents.
Jaishankar also touched on the digital realm, where insecurities around sourcing and collaboration are intensifying. As artificial intelligence becomes increasingly central, questions about where data originates, how it is processed, and its ultimate use are critical, he said. Balancing market dynamics with privacy and security needs will require stronger political ties, alongside considerations of efficiency and talent, he concluded.