National interest guiding factor for India’s energy imports: Vikram Misri | India News
India is not only one of the largest energy consumers but also plays an important role as a stabilizing factor in global energy markets, which is one reason why the country imports energy from multiple sources, External Affairs Minister Vikram Misri said on Monday.
Regarding India’s energy imports, Misri said, “whether it is the government’s business or our business, at the end of the day, national interest will be the guiding factor in our choices.”
In the Ministry of External Affairs (MEA) briefing on the visit of Seychelles President Patrick Herminie, who met with Prime Minister Narendra Modi earlier in the day, the external affairs minister was asked to clarify India’s stance on Russian oil imports in the context of the India-US interim trade agreement framework. Misri’s comments come at a time when Commerce and Industry Minister Piyush Goyal has argued that questions regarding India’s oil imports from Russia should be referred to the MEA.
Misri detailed his thoughts on India’s energy imports, noting that India is a net importer of oil and gas. “We are a developing economy. We have to be conscious about our resource availability. Naturally, when you are 80-85 per cent dependent on an imported source, you have to be concerned about the possibility of inflation due to energy costs. So, it is no surprise that when it comes to energy, our top priority is to protect the interests of Indian consumers, ensuring that they get adequate energy at the right price, through reliable and safe supply,” he said.
Misri said that India’s energy import policy is completely guided by these targets. “You will also have observed that in recent years the global economy has been facing significant uncertainties that have had a huge impact on the stability of global energy markets. India and I imagine that many, if not every country, around the world have a common interest in ensuring stable energy prices and secure supply,” he said.
“I would like to underline that India is not only one of the largest energy consumers but also plays an important role as a stabilizing factor in global energy markets and this is one reason why we import energy from multiple sources,” Misri said. said Misri, adding that the key drivers of India’s energy policy are “adequate availability, fair pricing and reliability of supply”.
The foreign minister said India’s energy import data shows that the country buys crude oil from dozens of countries. “We are not dependent on a single source for this and we do not intend to be. It is natural that the resource mix will change from time to time depending on objective market conditions,” he said.
Misri said India’s approach is to maintain multiple sources of supply and diversify them appropriately to ensure stability. “Therefore, the more diversified we are in this field, the safer we will be,” he said.
He added that the actual supply of oil is carried out by public and private sector oil companies. “They’re making decisions based on market conditions. At any given time, they’re assessing availability, they’re assessing risks, they’re assessing costs in the process. And all of these companies also have processes and fiduciary responsibilities around internal accountability. So, at any given time, there’s a pretty complex matrix of issues that these companies have to consider,” he said, adding that these involve significant financial and logistical considerations.
“I hope that you will continue to see business choices in this sector being made based on these considerations. What I can say with certainty and certainty is that at the end of the day, the national interest will be the guiding factor for us in our choices, whether it is the government or our businesses,” Misri said.
