Indian diplomacy has been in overdrive mode ever since it has become clear that the Strait of Hormuz standoff is not going to be resolved soon. Also, the incident has made it obvious that such bottlenecks remain a threat to the world economy and, wherever possible, diversification of resources needs to be done, even if there are higher costs involved in the interim. It is no surprise, therefore, that leaders and other senior representatives of many countries are being hosted in Delhi, while the PM and External Affairs Minister have been on foreign trips to finalise agreements that would help in the diversification process.
In the immediate context, India is managing the Strait of Hormuz crisis through a combination of strategic crude diversification, diplomatic exemptions, and naval security deployments. By importing roughly 70% of its crude from non-Hormuz routes (like Russia, West Africa, and the Americas) and securing transit permissions from Iran, India has avoided severe energy shortages. India’s crisis management relies on certain key strategies.
These include diplomatic exemptions – India has successfully engaged with regional powers to secure commercial shipping. Iranian authorities officially permitted Indian-flagged commercial vessels (along with select other nations like China and Russia) to transit the Strait of Hormuz. Similarly, the Ministry of Petroleum and Natural Gas aggressively diversified supply lines, increasing spot purchases globally and utilising discounted Russian crude that bypasses the Persian Gulf entirely. India has also buffered against short-term oil supply shocks by drawing on its emergency reserves. According to reports, the Indian Navy has maintained a continuous presence in the Gulf of Oman under Operation Sankalp to escort and protect Indian-flagged merchant vessels.
Bilateral trade agreements have been activated and trade partnerships enhanced, including utilising Oman to bypass disrupted shipping lanes. The Directorate General of Shipping monitors the Gulf region, coordinating the safe transit or repatriation of Indian seafarers and offering an active control room to manage concerns.
For the longer term, as has been seen, the effort has already been underway to reduce dependence on oil in areas where other sources of energy are available. The process may prove more expensive in the transition period but the long term benefits will be greater, including improvements in the quality of life. As the Prime Minister has stated, the public can cooperate by adopting measures that will reduce the foreign exchange challenges that may emerge. It is not just a crisis for India, but also for the entire world that is outside the existing monopolies. An alternative structure is needed and will hopefully soon emerge.
