The abrupt realignment of energy transit corridors suggests a wider strategic realignment. Following a hiatus of over seven years, India has resumed providing Iranian energy supplies. The recent resumption coincides with a period of reduced energy flows from West Asia. The ongoing hostilities between the US and Israel have caused disruptions of global oil and gas flows, forcing India to increase its energy supply costs and to contend with uncertain supply chains. In addition, heavy reliance on critical sea routes exposes India to significant vulnerability.
Therefore, policymakers are favouring more strategic flexibility in their energy sourcing rather than strict adherence to rigid political alliances. This decision also reflects a deliberate geopolitical positioning relative to China and the United States. This move has reinforced the perception that India’s geopolitical orientation is shifting away from a pro-Western alignment and returning to the original principles of Indian non-alignment. Hence, energy security is once again a driving force behind the recalibration of India’s foreign policy.
Supply disruptions and price shocks reshape India’s energy strategy
After being pressured by the USA, India stopped buying products from Iran. However, due to supply chain disruptions recently, India is reassessing their supply chain process. As a result, Indian refiners have sourced crude oil from forty+ countries and resumed importing from Iran without any payment issues. Additionally, some of the supplies from Iran have already been delivered to India in the form of Liquefied Natural Gas (LNG). Global oil prices have increased significantly over the last few months, which has increased the costs for importing, also due to supply constraints. Because of this, India has increased their imports from both Russia and Iran, and this additional sourcing is being done in order to ensure that there are no domestic fuel availability issues. This will allow India to become more resilient to global volatility.
India Energy Choices Reflect Strategic Autonomy in Diplomacy
Energy-related decisions are taken based on broader geopolitical issues, especially since India relies heavily upon the Strait of Hormuz, which accounts for almost 50 percent of its crude oil supply. Keeping the Strait of Hormuz as a secure and navigable maritime corridor is an important confidence-building measure to establish good relations with Tehran. Also, India’s expectation is that Tehran will cooperate to secure trade routes.
Although India did not join the U.S.-led naval coalition, this was intended to send a message of maintaining a bilateral relationship with Tehran instead of joining Washington’s plan to establish a joint naval coalition. “India has opted for a path of bilateral negotiation with Tehran and has chosen to engage in direct bilateral negotiations with Tehran as opposed to engaging in a U.S.-proposed multinational naval coalition to secure passage across the Strait of Hormuz and maintain diplomatic distance from the U.S.,” said Bhattacharya. At the same time, India’s efforts are to continue working to balance its interests with Iran and maintain a strong national interest position.
Future uncertainties will shape India’s long-term energy alignment
In the future, policy direction will reflect changes in the global political landscape. U.S. sanctions relief has allowed the purchase of Iranian oil, but restrictions may lead to another adjustment. Meanwhile, India is expanding its sources of supply by diversifying across various regions. This helps limit dependency on one partner country. As a result, maintaining strategic autonomy is critical when making decisions. Increased energy demand creates an even more complex environment for planning long-term goals. India must balance both economic and diplomatic pressures. Therefore, India’s action towards Iran is based on a pragmatic approach rather than a permanent shift in its foreign relations with Iran.
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