Amidst the ongoing tension in West Asia and gas shortage in the country, continuous steps are being taken by New Delhi. Amidst the fear of economic crisis, Narendra Modi is in talks with Iran, while on the other hand, India also wants to maintain better relations with the United States. The biggest example of this is the passage of two Indian LPG tankers through the Strait of Hormuz. After the joint air strikes by Israel and the United States on Iran, the Strait of Hormuz has been completely closed for the last two weeks. However, currently only India, China and Russia have been allowed to pass through this transit route from where the war started.
India’s tremendous diplomacy
India had initially maintained silence after the American attack on Iran, but in view of the increasing impact of the war on the energy and financial markets, New Delhi has intensified diplomatic initiatives. India is one of the largest importers of LPG in the world and its shortage is being felt amid the war. On one hand, LPG is used as cooking gas, on the other hand it is also used in industrial purposes. On the other hand, India imports about 90 percent of its crude oil needs. In such a situation, after the price of crude oil crossed 100 dollars per barrel, the pressure of rising inflation has increased. Along with this, the Indian currency has also reached its all-time low.
India meeting the double challenge
On one hand, India has reached out to Iran, on the other hand, it also wants to maintain strong relations with its close strategic and economic partner United States amid the war. Earlier this month, America took a different stance from its previous stance while giving relief to India on buying oil from Russia. Earlier, Donald Trump administration had imposed an additional 25 percent tariff as a penalty on India for buying cheap oil from Russia. America is also India’s biggest export market and after a recent deal, President Trump had announced reduction in some tariffs imposed on India. According to international experts, India is currently moving forward with a balanced approach. According to Nitin Pai, founder of Takshashila Institution (Bengaluru-based think tank), the passage of Indian LPG tankers through the Strait of Hormuz is a direct indication that New Delhi’s diplomacy is working.
