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Stubble burning surged in Uttar Pradesh, Rajasthan, and Madhya Pradesh. Madhya Pradesh recorded 16,360 cases, the highest among states monitored, writes Surabhi Gupta.
The increase in stubble-burning cases in Uttar Pradesh, Rajasthan, and Madhya Pradesh highlights gaps in policy implementation and technology accessibility. (ETV Bharat)
New Delhi: The Indian Council of Agricultural Research (ICAR) has unveiled its findings from the satellite-based monitoring of stubble burning across five major agricultural states; Punjab, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh. Conducted between September 15 and November 30, 2024, the study highlights a marked reduction in the overall number of stubble-burning incidents compared to previous years.
According to the ICAR report, stubble-burning cases declined to 37,602 in 2024, representing a 34% drop from 2023 and a staggering 59% reduction since 2021. This data underscores growing awareness among farmers and the impact of various government initiatives to curb the environmentally harmful practice.
Expert Insight
S.N. Mishra, a climate expert and professor at TERI School of Advanced Studies, spoke to ETV Bharat on the issue. "While the reduction in stubble-burning cases is encouraging, the claim of a 70% reduction in Punjab appears overstated. Farmers are increasingly avoiding detection by burning stubble at times not monitored by polar-orbiting satellites," Mishra explained.
He added, "Air pollution in North-West India is influenced by two key factors: aerosol loads and atmospheric conditions. This year, strong post-Diwali winds and the absence of an inversion layer helped prevent a pollution spike. However, high nighttime aerosol loads suggest that pollution levels remain concerning. Effective long-term solutions require consistent policy enforcement, farmer engagement, and economic incentives for sustainable residue management.”
Four-Year Overview of Stubble Burning Cases
Statewise Analysis
The report provides a detailed breakdown of cases by state, showing progress in some areas while highlighting persisting challenges in others.
While Punjab and Haryana reported significant reductions, 70% and 39%, respectively, stubble-burning incidents surged in Uttar Pradesh, Rajasthan, and Madhya Pradesh. Madhya Pradesh recorded 16,360 cases, the highest among the states monitored, reflecting a 31% increase compared to 2023.
The report provides a detailed breakdown of cases by state, showing progress in some areas while highlighting persisting challenges in others. (ETV Bharat)
Reasons for Success in Punjab and Haryana
Several factors contributed to the success in reducing stubble burning in Punjab and Haryana:
• Sustainable Technologies: Subsidized machinery like happy seeders and super straw management systems facilitated in-situ residue management.
• Awareness Campaigns: Efforts by government bodies and NGOs educated farmers on the harmful environmental impact of stubble burning.
• Policy Interventions: Stricter enforcement of penalties and financial incentives under the Commission for Air Quality Management (CAQM) played a pivotal role in deterring the practice.
Challenges In Other States
The increase in stubble-burning cases in Uttar Pradesh, Rajasthan, and Madhya Pradesh highlights gaps in policy implementation and technology accessibility. Madhya Pradesh’s 31% increase in cases underlines the need for region-specific strategies and a stronger focus on farmer support.
Impact on Air Quality
Stubble burning has long been a key contributor to the winter air pollution crisis in North India. The decline in incidents in Punjab and Haryana has had a noticeable impact, improving air quality during the post-Diwali period. However, experts caution that rising cases in other states could offset these gains, emphasizing the need for a nationwide approach to tackle this issue comprehensively.
The ICAR report paints a mixed picture of progress and challenges. While the overall decline in stubble-burning incidents is a step in the right direction, the surge in cases in certain states demands urgent attention. Experts call for consistent policy enforcement, increased financial incentives for sustainable practices, and continuous engagement with farmers to eliminate the practice altogether.
As Mishra aptly noted, “The problem is not just seasonal but systemic. Long-term solutions will require integrating economic, technological, and environmental strategies to achieve lasting results.”
The success in Punjab and Haryana offers a blueprint for addressing the issue across India. Still, achieving cleaner air for all will require coordinated efforts and sustained commitment at all levels.
Read MoreDr. Habeck emphasised India’s immense renewable energy potential, particularly in solar and wind, which allows for green electricity generation at globally competitive prices
Dr. Robert Habeck, German Vice Chancellor and Minister for Economic Affairs and Climate Action, engaged with students from TERI School of Advanced Studies (TERI SAS) to discuss opportunities and challenges of the energy transition in both India and Germany, with a particular focus on win-win scenarios through decarbonising economies.
In his opening remarks, Dr. Habeck emphasised India’s immense renewable energy potential, particularly in solar and wind, which allows for green electricity generation at globally competitive prices. He highlighted the importance of international cooperation, which offers mutual benefits, and encouraged students to see their essential role in this journey toward sustainable development. As future engineers, scientists, policymakers, and entrepreneurs, students have a critical role in making green development a reality.
The discussion with the students covered decarbonisation of economies, globalisation, diversified supply chains, and international cooperation. Students explored Germany's approach to achieving an 80% renewable electricity share by 2030 and discussed challenges in managing hard-to-abate sectors, potential job impacts, and the necessity for public support in the energy transition. Topics also included opportunities in trade, specifically in solar, battery manufacturing, and green hydrogen.
Prof. Suman Kumar Dhar, Vice Chancellor, TERI SAS, highlighted, “Dr. Robert Habeck engaged students in a vibrant dialogue titled 'Inspiring Minds, Empowering Change - Navigating the Future Together'. His insights on sustainable development and climate action ignited passion among future leaders, highlighting the impact of collaboration. Through critical discussions on innovative solutions, Dr. Habeck inspired a generation to think creatively and act decisively in addressing global challenges, showcasing education’s role in shaping a sustainable future.”
Following the student exchange, Dr. Habeck and Abhay Bakre, Mission Director, National Green Hydrogen Mission, Ministry of New and Renewable Energy (MNRE), jointly presented the Indo-German Green Hydrogen Roadmap. Officially agreed upon at the 7th Indo-German Inter-Governmental Consultations on 25 October 2024, this roadmap outlines a shared path to achieving a sustainable energy future.
The panel discussion was joined by Rishika Rajkumar, Suhani Nagar, Dhruv Rajoria, Anuja Ramugade, Jayati Gupta and Taveri Rajkhowa.
Read MoreAccording to LinkedIn’s ‘Jobs On The Rise 2024’ report, ‘Sustainability Manager’ is one of the top 25 most sought-after roles in India.
New Delhi: Shiny, brand-new red benches that popped up one day in Delhi University’s North Campus led 20-year-old Sneha Chopra to a career in environment. Initially thinking they were a PR stunt by a brand, Chopra, then a zoology student at Khalsa College, ignored them. But then she saw that these benches, installed by Zomato, were made of 100 per cent recycled plastic waste as part of a sustainability campaign.
“It was my first time seeing a company take concrete action for the environment, and I realised there’s so much scope for sustainable action in the corporate world,” said Chopra, who is now pursuing a master’s degree in Environmental Studies and Resource Management from The Energy and Resources Institute (TERI) in Delhi. She wants to graduate and work as a sustainability manager for a big corporation like Zomato, helping reduce their carbon footprint.
Chopra is one of the many new ‘climate aspirants’ in India – she wants a career working in the climate action sector, and the avenues to choose from seem endless. LinkedIn’s Jobs on the Rise 2024 report named ‘Sustainability Manager’ as one of the top 25 most sought-after roles in India. Climate change has permeated every sector and industry, from environmental, social, and governance (ESG) consulting and environment law to climate agriculture science and renewable energy policy. Colleges are perking up at the opportunity, introducing new courses on climate sciences. Companies, on the other hand, are offering workshops on sustainability to their employees.
“Climate is the economy now”
– Arunabha Ghosh, CEO, CEEW
According to industry experts, this growth is partly motivated by increased student interest in issues of climate change and mitigation. Others point out that the interdisciplinary nature of climate jobs makes them attractive to a wider audience. However, most industry insiders agree on one thing – the climate careers trajectory will only grow upwards.
“Climate is the economy now,” said Arunabha Ghosh, CEO of the Council on Energy, Environment and Water (CEEW). “It is not just some sectors or industries that need to adapt to the climate crisis, it is the whole world that needs to incorporate climate concerns in its overall thinking.”
Sustainability consulting taking off
Karantaj Singh, the 25-year-old co-founder of a Bengaluru-based ESG technology firm called Breathe ESG, has been passionate about sustainability since “before it became sexy”.
Singh was still in high school when a chance visit to the United Nations Headquarters in New York sparked his interest in the climate action sector. The visit was organised by the World Federation of United Nations Associations (WFUNA) in 2015, the year they announced their Sustainable Development Goals (SDGs). Now, Singh has been in the sustainability space for almost a decade.
Upon his return, he co-founded The Deepam Initiative in Bengaluru to provide climate-resilient infrastructure to villages in Karnataka. Right after college, when he joined KPMG as a strategy consultant, Singh realised the real potential of sustainability in even a mainstream profession like consulting. So he left the growing ESG advisory team at KPMG to start a firm focused exclusively on helping companies streamline their environment and sustainability management processes.
He was a part of the growing ESG advisory team in KPMG for a year before leaving to start a firm solely dedicated to helping companies streamline their environment and sustainability management processes.
“Being sustainable is no longer a choice for companies – investors, customers, and international regulations all demand that sustainability should be the core function of any company,” explained Singh.
Barely two years old, Singh’s Breathe ESG already has a number of clients in sectors such as real estate, infrastructure, manufacturing and even retail. They use the firm’s solutions to manage, calculate and report companies’ carbon emissions and sustainability practices. Indian regulators such as the Securities and Exchange Board of India (SEBI) mandate the top 1,000 companies in India to report their ESG practices, but more and more companies are voluntarily declaring their emissions in a bid to be more sustainable. This is the market that Singh, his co-founder Shaayak Chatterjee, and their team of 15 employees from engineering, business, history, environment science, and marketing backgrounds have tapped into.
KPMG, Singh’s former employer and one of the world’s biggest consulting firms, also leads in environment and sustainability services in India. It offers a range of ESG solutions to its clients, including ESG reporting, climate risk modelling, and sustainable finance. Namrata Rana, National Head for ESG, KPMG India, spoke about how the need for ESG consulting services arises because of the way climate change has permeated every company.
“The world has realised that unless they are aligned to the natural ecosystem and its changes, the entire business model that the world runs on is under threat,” said Rana, explaining how the real-world impact of climate change and extreme weather is much stronger for companies than regulatory frameworks demanding sustainability measures. KPMG India’s ESG vertical started just before Covid-19 with about 35-40 people. Now, it has over 200 employees across the board. Rana also added that sustainability is a company-wide watermark for KPMG – every practice and service in the organisation embeds ESG.
Viral Thakker, Partner, Sustainability & Climate Leader, Deloitte South Asia, echoed Rana’s views on how clients are responding to more “nature-based solutions” in ESG consulting. He explained that the number of people and companies working in ESG indicates a “profound shift” in how companies are looking at climate change and reacting to it.
“The job market goes through waves – a few years ago, data science was all the rage, then it was product management. Now, India’s going through the climate wave,” said Shrey Agarwal, founder and CEO of Alt Carbon, a carbon dioxide removal (CDR) company based in Darjeeling, West Bengal.
Agarwal’s point also comes across acutely in industry reports – the transition to climate-centric jobs is being acknowledged by the entire job ecosystem. According to the International Labour Organization’s ‘Assessment of India’s Green Jobs and Just Transition Policy Readiness’ report 2023, around 54 million green jobs will be created in the country between 2021 to 2030. Other organisations such as the Skill Council for Green Jobs (SCGJ) peg the number at 30-35 million new green jobs by 2047. However, as the ILO’s report states, and the industry agrees, “green jobs are a priority in India.”
In terms of the economic impact of green jobs, the World Economic Forum, in a report titled ‘Mission 2070: A Green New Deal for a Net Zero India’, estimated that the country could create a $15 trillion economic opportunity through its green transition by 2070. Out of this, the report said, $1 trillion worth of opportunities could be created just by the end of this decade.
“Climate is where the money is,” said Amlan Bibhudutta, a 24-year-old research analyst at CEEW. With a degree in economics and a postgraduate diploma in data and policy, Bibhudutta initially wanted to get a postgraduate degree in economics and move abroad. But a year into researching energy transition pathways at CEEW, he realised the scope in the climate space.
“The job market goes through waves – a few years ago, data science was all the rage, then it was product management. Now, India’s going through the climate wave”
– Shrey Agarwal, founder and CEO, Alt Carbon
“It isn’t just energy or sustainability. There is climate finance, there’s pollution, afforestation – you name it, and there are people working on it. The thing with climate change as opposed to other social impact sectors like poverty alleviation is that it affects everyone, even financial institutions and big industries. So they’re all the more interested in mitigating it,” he explained. In three years, Amlan was promoted from a consultant to a full-time analyst with CEEW, where he is part of the climate finance team.
The journey of CEEW itself exhibits the steep rise in climate careers in India. From less than 80 employees in 2019 to around 350 employees in 2024, the think tank has become one of the biggest in India. Its focus on environment, renewable energy, and water has made even the government take notice, and many verticals of the think tank are working with state and central government departments to help design sustainable policies.
“The rise in climate jobs is entirely demand-driven,” said Reman Singh, the head of human resources at CEEW. “The demand right now far outstrips the supply in this sector,” she added.
Climate and environment education
For Shubha V, an alumna of IIM Indore, working in Ernst & Young’s climate change and sustainability services vertical was ideal for starting a career in climate-focused consulting. When she was sitting for her placements at IIM in 2022 during her five-year Integrated Programme in Management, there was a tough competition for this role – almost as much as there is for mainstream consulting roles in the ‘Big Four’. Only nine people, including Shubha, got the job that year from her college.
“It was a prestigious job, and the interview process was equally daunting. There were three rounds including a written, an HR interview, and a final interview,” she said.
It was during the final interview process, when she met her future bosses, that Shubha was quizzed on her ability to serve in a sustainability role.
“I realised it wasn’t just generic MBA questions and case studies – they were more interested in my understanding of sustainability, and how I had used my skills in the climate sector before,” she recalled.
“They were trying to gauge if my long-term goal aligned with working in climate change.”
Shrey Agarwal of Alt Carbon too talked about the freshers they usually hire at Alt Carbon. He explained that most of the students from BITS and IITs, and even local engineering colleges in Darjeeling and Sikkim, where their facility is based, are very well-versed with the hardcore STEM skills required for climate tech companies. The problem arises in knowing how to apply these skills to the climate sector.
“Many engineers and scientists know about climate change but don’t think about how they can apply their geoengineering and research skills to actually solve the issue,” said Agarwal.
“Climate deep-tech can significantly change the world, but it’s an underrated industry in India right now, and colleges can definitely help facilitate its growth,” he added.
Some colleges in India are actively working to facilitate this growth in climate awareness.
From established IITs and NITs to newer private universities such as OP Jindal Global University and Ashoka University, there are courses, departments, and degrees dedicated to environment, climate, and energy studies.
Azim Premji University’s Centre for Climate Change and Sustainability already has over 80 students enrolled in their BSc in Environmental Science and Sustainability programme that was introduced only two years ago. The department, which was launched in 2019, offers training workshops and short courses like environment data analysis and environment reporting for mid-career professionals. Due to growing demand, the department has also decided to start a master’s in Environment Change and Sustainability programme this year.
“We don’t have a degree requirement for our BSc or MSc courses – you can be from any background. The nature of our course is interdisciplinary, just like climate change,” explained Harini Nagendra, the director of the centre. Owing to demand, Nagendra also started a weekly webinar on job opportunities in the sustainability sector this September, and the first episode garnered more than 1,700 viewers.
While Azim Premji and OP Jindal have both introduced specific environmental programmes fairly recently, other prominent institutions such as IIT Bombay, NIT Rourkela, and IIT Madras have been offering courses in environmental engineering, atmospheric sciences, and climate sciences for far longer. NIT Rourkela, the first NIT in the country to offer master’s courses in atmospheric sciences in the year 2010, currently has 108 postgraduate students and 48 PhD students in the department, all pursuing varying levels of research in the field of climate change action. Similarly, IIT Bombay’s Centre for Climate Studies, which started with around four PhD students in 2012, has over 70 PhD students enrolled now.
“Universities and education spaces are at the forefront of climate science – they develop models to predict climate trends, they analyse data for extreme weather events, and recommend policy measures for climate mitigation,” said Nagaraju Chilukoti, an assistant professor in the Department of Earth & Atmospheric Sciences at NIT Rourkela, Odisha.
Interdisciplinary nature of climate careers
At the TERI booth at the International Solar Festival in Delhi, 27-year-old research associate Hemakshi Malik animatedly explained her work in renewable energy, focusing on solar potential in agriculture in the states of Haryana and Uttar Pradesh. But five years ago, she was studying physical science in Delhi University, hoping to work in quantum computing.
“My journey into energy transition and climate change was quite accidental, but once I was here, I couldn’t leave,” said Malik, emphasising the importance of the work she does at TERI.
After an internship with GIZ India, which provides services for sustainable development, in 2023, where she worked on the potential estimation of agrivoltaics in different Indian states through remote sensing and Geographic Information Systems (GIS), Malik understood the impact of technology on climate change policy. She has now completed a year at TERI as a research associate; her favourite part is that she gets to interact not just with the private sector but also with government stakeholders and communities to understand the barriers and enablers for the proliferation of renewable energy. This multisectoral extent of her job also involves an interdisciplinary cadre of researchers.
“I come from physics, while my colleagues are economists, doctors, social scientists, engineers,” Malik laughed. “Yet here we are all working together because all our skills are equally important in something as all-encompassing as climate action.”
Environment science might have been a niche subject during my parents’ time, but we’re a generation that has grown up with global warming.
– Ireena Singh, an undergraduate student of environment studies at OP Jindal Global University
CEEW’s Reman Singh made similar arguments from the employer side of the equation. Their organisation actively employs people from political science, international relations, anthropology, and physical sciences to work on climate change-related issues. Their main ask is – can this individual understand the different facets of this planetary problem? Can they be a force for public good in the realm of climate change?
In today’s generation, it is not difficult to find such individuals. Ireena Singh, an undergraduate student of environment studies at OP Jindal Global University, said that choosing her discipline was never much of a dilemma. She remembers studying about the depleting ozone layer and climate change since she was 10 years old. Shreya Sharma, a graduate in literature from Ashoka University, started pursuing environment as a minor only in her final year but went on to work in an environment advocacy firm because the subject gripped her.
Azim Premji University’s Harini Nagendra also attributed the rising interest in climate careers to the sheer exposure that the younger generation has had to climate change. It is no longer a distant threat, but a very real, in-time experience for most of them. So, added Nagendra, “their passion to work in this field is quite understandable”.
“Environment science might have been a niche subject during my parents’ time, but we’re a generation that has grown up with global warming,” said 20-year-old Ireena, currently in her third year of undergraduate studies and looking for jobs in climate-driven NGOs. “I think it’s surprising for someone my age to not want to work in climate action.”
(Edited by Aamaan Alam Khan)
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The ripple effects of Russia’s invasion of Ukraine has been felt across the globe, including the rise in prices of crude and sunflower oil. For countries dependent on importing oil, like India, how has this impacted local markets and the pockets of consumers? Does it also reveal India’s precarious geopolitical position in global trade?
That chicken in Telangana and the Russia-Ukraine War could belong in the same sentence seems unlikely. Yet, when Russian forces began missile and artillery attacks on Ukrainian forces on 24 February 2022, it sent ripples across the globe—when the supply of chicken feed from Ukraine was hit, India stepped in to meet global demand. This raised the price of feed, and consequently chicken for Indians. Fertilisers met the same fate as chicken feed with Russia’s export capabilities being hampered, as did the world’s liquid gold—crude oil. With Russia being one of the leading exporters of crude oil, the war’s impact was quickly reflected in global prices.
https://infogram.com/crude-oil-1h7k230wpkmlg2x
Such global volatility—and the unique shocks it creates across markets worldwide—encapsulates just how interlinked the world we live in is. But for a country like India which imports up to 80% of its oil, this moment is a reminder of its precarious dependence on conflict-afflicted countries for crude oil. How does the Russia-Ukraine war and the subsequent rise in crude oil prices impact India, and what does it reveal about India’s geopolitical position in the global oil trade?
Supply Hit in Russia, Inflation Felt in India
Of the heavy import dependence India has on oil, its dependence on Russia is only about 1%. The highest import —23%— comes from Iraq, followed by Saudi Arabia, UAE, USA, and Nigeria. Nevertheless, the global shocks to oil prices followed by the war are bound to have domestic impacts. With every $1 per barrel increase in crude, an estimated 60-70 paisa per litre increases in retail fuel prices in India. After an election season wherein fuel prices remained stable, the impact of rising crude prices is now being felt by the Indian consumer—the last ten days of March saw six hikes in petrol and diesel prices, leading to an increase by ?4-4.10 per litre.
https://ourworldindata.org/grapher/oil-proved-reserves?country=~OWID_WRL
The distribution of oil reserves across the world shows Russia as one of the dominant oil holders | From OurWorldInData
“The rising crude oil prices of course hamper India’s supply chain of oil, but this prolonged disruption in energy also has other severe consequences, like the depreciation of the rupee,” says Vaishali Basu Sharma, Former Consultant at National Security Council Secretariat. Sharma is right. A recent report by Crisil states, “with the rising demand for dollars to pay for expensive oil imports, the depreciation pressure on the rupee will intensify.” The rupee has indeed seen a rise in the last few weeks, from 74.5/$ before the war, to crossing 76/$ as of 18th March this year. The Crisil report also estimates that the depreciation is here to stay. Combined with the Russia-Ukraine war, other factors like rate hikes by the US Fed would ensure that the rupee depreciates further before settling to 77/.5$ by March 2023. “With the depreciation, one can expect a slight inflation, and that will have an effect on employment and livelihoods of people in the country,” Sharma adds.
Another impact is on a resource that is a popular find in most Indian homes—sunflower oil. India imports 175,000 to 200,000 tons of this household necessity every month, a majority of which comes from Ukraine. But since February, only about 152,000 tons have arrived in India, owing to the war. Indian households are already facing the brunt of this, as a litre of the edible oil now costs ?195 in the retail market, as opposed to early February’s price of ? 141.
In the face of the crude oil rises—and as a “resolve to stand up against Putin” — the United States took a strong stance and banned any import of Russia’s oil, natural gas, or coal into the country. India took a route of its own, it is one that also sheds light on the long-term relationship between India and Russia.
India-Russia Energy Deals: A Thing of Recent Past
“This is a significant action…that will further deprive President Putin of the economic resources he uses to fund his needless war of choice,” said the White House statement, after enforcing the ban on oil imports from Russia on 8 March. Soon after, reports surfaced of Russia offering India and a few other importers discounted prices on crude oil. As Canada, Japan, New Zealand, and Italy became few of the many nations who imposed sanctions on Russian energy, banking, private wealth, and technology—right from stopping operations of Starbucks in Russia to Paypal blocking Russian Banks— India mulled over these discounted prices. Three days later, reports confirmed that Indian Oil Corporation bought as much as 3 million barrels of crude oil that were offered by Russia at steep discounts of $20-25 per barrel. Hindustan Petroleum Corporation Limited soon followed suit.
Not all companies have signed similar contracts. Some companies whose assets are exposed to the United States, like Reliance, are consciously not getting into contracts because that would be a complete violation of the US-imposed sanctions on oil imports.
– Dr Gopal Sarangi, an economist and faculty at TERI School of Advanced Studies
Why India chose to make use of the oil discounts becomes clearer looking at recent energy decisions that the two nations have committed to. When Prime Minister Narendra Modi was on his 2019 visit to Russia, he signed a Memorandum of Intent on developing a new trade route to transport oil amongst other goods from Russia to India. This 5600 nautical mile route between Vladivostok in eastern Russia and Chennai in India would take only 24 days, as opposed to the 40 days currently taken via the eastern Europe trade route.
Prime Minister Modi and President Putin discuss increasing trade and people-to-people linkages between India and Russia in 2019 | From Twitter
With 2020 came another such development. Public enterprise Indian Oil Corporation (IOC) signed a contract with the Russian oil exploration and processing company Rosneft for the supply of two million tonnes per annum of crude oil to India through the port of Novorossiysk on the Black Sea. This was seen as Russia’s attempt to focus on strengthening trade ties with India through oil and gas—a resource that India lacks in domestic reserves—besides the already existing trade for defence systems.
“Considering these developments that would benefit India’s import basket of oil, it becomes understandable as to why India chose to abstain from voting in the UN General Assembly on demanding an immediate end to the Ukraine invasion,” Sharma adds. “But, the current war is also a reminder that India’s import dependence puts it in a constantly volatile and precarious situation to global shocks. India needs to look for oil import options that are stable, cheaper, and closer. Be it Russia, USA, or OPEC, India should maintain a diverse mix of suppliers in the interest of its energy security. As a second goal, it needs to look out for its own economy, and therefore [account for] discounts, long-term if possible. India has significant investments in Russian energy and that relationship should continue.”
Exposing India’s Volatile Position
This is not the first time that India has been at the centre of rising oil prices due to political uncertainty. In June 2019, two oil tankers were damaged by explosions in the Gulf of Oman, as tensions between Iran and the US escalated. As this route fell under the Strait of Hormuz, the world’s most important oil chokepoint, it hiked oil prices, as international trade was impacted. India faced the brunt—of the 83% of total oil it imports, a huge 65% comes through the Strait of Hormuz. With such geopolitical uncertainties and volatility of oil prices, the “Indian economy is and will become even more exposed to such risks,” a 2020 International Energy Agency review stated.
One way to reduce the shocks that India faces due to its high import basket of oil is to diversify the basket with other resources, like natural gas. Compared to other petroleum products, natural gas is known to have lesser carbon and is also considered a ‘bridge fuel’ to transition from fossil fuels to clean energy. Amit Bhandari in his book India and the Changing Geopolitics of Oil states that India imports natural gas from Qatar, Australia and the US—not India’s traditional energy suppliers. “Widening the supplier base automatically reduces supplier risk… Moreover, Australia and the US are stable democracies – they don’t face instability that is common to oil-rich countries in West Asia, Africa and South America,” he continues in his book.
But, even diversifying to natural gas does not escape the impacts of geopolitical instability, as is evident in natural gas pipeline plans that India has initiated with its neighbours. An Iran-Pakistan-India (IPI) pipeline to transport gas was preliminarily signed in 1995 but fizzled out over the decades. A major reason, as Sanket Sudhir Kulkarni discussed in his 2016 paper, was the constraints in attracting risk capital for the project—India found it difficult to find insurers for its crude oil imports from Iran, which is considered as hostile territory. Moreover, Iran had earlier shown lukewarm interest in the IPI pipeline, owing to the fact that Iran needed gas resources to meet its own domestic demand.
The route of the Turkmenistan-Afghanistan-Pakistan-India pipeline via Wikimedia Commons
Decades later, another pipeline deal backed with investments made headway, which could aid India in reducing its dependence on Saudi Arabia. A Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline was envisioned, and a groundbreaking ceremony was held in Turkmenistan in 2015. Estimating a delivery of 90 million metric cubic metres per day of gas from Turkmenistan to South Asia, the pipeline would cover nearly 1700 km of distance. Unlike the IPI project, attracting investments for this project became easier after the Asia Development Bank (ADB) extended firm support backed by the US. However, after the Taliban took control of Afghanistan last August, ADB refused support until the Islamic Emirates of Afghanistan is recognised, proving yet again the impact of geopolitical instability on India’s oil supply.
Apart from pipelines, diversification to other energy sources can help reduce India’s import dependence. And that is not the only strategy.
Reducing India’s Energy Import Dependence
“Diversifying is an important long-term strategy but equally challenging,” Sarangi mentions. “For instance, many Indian states are promoting electric vehicles (EVs), but we need to also work to change the energy mix [a breakdown of primary energy sources for a country]. With EVs then, we should be prioritising its use in public transport, while most of the policies currently still focus on private transport, which would change the energy mix only minimally.”
To increase our domestic production and reduce import dependence by 10% by 2022, India also launched the Hydrocarbon Exploration and Licensing Policy (HELP), a policy to boost the production of oil and gas in India. It envisions doing so by making exploration of all hydrocarbons smoother through steps like uniform licences for exploration and production. Sarangi mentions another exploration India can benefit from. “India is also home to basins of shale gas, which can diversify from oil demand. But fracking shale gas comes with concerns of large water requirements for the process, as well as the water pollution it leads to… we have to be mindful of it,” he adds.
The current Russia-Ukraine war goes to reveal India’s volatile position in the oil market, which has persisted through history and may well be here to stay. Yet, even as India gears up to reduce its import dependence when it comes to oils, especially crude, it should not come at the cost of diluting environmental norms, or we will be staring in the face of a vulnerability of a different kind, comprising ecological and climate exposures.
