India’s economic managers might have heaved a collective sigh of relief over Washington’s decision to exempt India and seven other nations (including Japan and China) from a complete ban on importing Iranian oil, but New Delhi’s hand-wringing over the entire issue illustrates the essentially fragile state of India’s energy security.
Despite the realisation that the country’s huge and growing energy requirements need to be secure and largely immune to chance disruptions, India’s policymakers have been unable to put in place a reliable framework to ensure uninterrupted, stable energy flows in times of crises.
Washington’s decision to dishonour its nuclear treaty with Tehran and hammer on economic sanctions was sudden as well as unforeseen. But contingency planning is all about the unexpected. Fortuitous changes ought not to result in a breakdown of ordered processes. Read more