In today’s ever-evolving global landscape, India’s find itself at the center of a delicate balancing act. Its relationship with the United States is flourishing, thanks to warm embraces from the Biden administration. However, simultaneously, India is strengthening ties with China, sending a clear message that its commitment to freedom takes precedence over being a mere U.S ally. India is undoubtedly in a geopolitical hot spot, with countries from around the world courting its favor, especially nations in Africa, Latin America, and Southeast Asia. The reason behind this global interest is straightforward – with a GDP of three trillion dollars and the fifth-largest economy globally, India is poised to become the next superpower.
The Irony of India’s Rise
What’s intriguing about India’s ascent is that it holds the key to the future for both the United States and China. In a symbolic gesture, President Joe Biden invited Prime Minister Narendra Modi to the White House for an official state visit in June. Their two countries’ combined trade exceeded a staggering $144 billion last year. However, just two months later, Modi attended the BRICS Summit in Johannesburg, South Africa, where he met Chinese President Xi Jinping. India’s role as a founding member of the BRICS alliance and its interest in improving relations with Russia, the U.S.’s biggest enemy, cannot be overlooked.
The Russian Connection
One of the pivotal reasons behind India’s refusal to form a traditional alliance with the U.S. government lies in its substantial reliance on Russian oil. Russia has become India’s leading source of crude oil, accounting for a substantial 40 percent of India’s crude imports. The CEO of India’s top oil company asserts that importing Russian oil is a win-win for the global economy. By purchasing from Russia, India contributes to freeing up oil supplies in the Gulf region, particularly for Europe, and significantly impacts its own economic growth.
India’s Resource Challenge
India faces a daunting challenge when it comes to natural resources. Despite its vast population and growing economy, it possesses limited oil and gas reserves. As the world’s third-largest energy importer, India relies on international markets for a staggering 80 percent of its crude oil. Following the U.S. and EU’s ban on Russian oil imports due to the Ukraine conflict, India’s refusal to comply is driven by its need to safeguard its economic future. An apt quote from a Middle Eastern Energy Insider encapsulates this situation – “God has given India a lot of things, but resources are not one of them.”
A Historical Perspective
To understand India’s stance better, one must delve into its history. After gaining independence in 1947, India was a struggling, newly decolonized nation during the Cold War. Its most crucial partner at the time was the Soviet Union. India’s close relations with the U.S. and Western allies were limited. The Soviet Union provided India with vital raw materials and security support through arms and ammunition. Even today, approximately 70 percent of India’s military resources are of Russian origin, making India heavily reliant on Russia for equipment and technology.
Non-Alignment and Multi-Alignment
India’s foreign policy has long adhered to non-alignment, allowing it to steer clear of entangling geopolitical conflicts that could harm its national interests and economic development. This policy stance is why India refrains from condemning Russia’s actions in Ukraine. As a developing nation, it cannot afford to become embroiled in external disputes.
Embracing a Multi-Polar World
India is actively embracing a foreign policy of multi-alignment, seeking to join various alliances and groupings to enhance trade and foster economic growth. While this approach may seem contradictory, it reflects India’s strategic positioning, with one foot in the Western Security Block, known as the Quad, and the other in the Shanghai Cooperation Organization, alongside China and Russia.
The Impact of Western Sanctions
Notably, Western sanctions on Russia are inadvertently pushing India closer to the BRICS alliance. With strong ties to both Western and Eastern-led trade and security blocks, India plays a pivotal role. As China and Russia aim to strengthen the BRICS alliance to challenge the existing world order, they require India’s full support. Recent developments indicate that the BRICS alliance could potentially introduce a new currency backed by gold, signaling a significant shift in global financial dynamics.
The Gold Rush
India, along with China and Russia, is stockpiling gold, a move that hints at the emergence of a new BRICS currency in the future. The addition of Saudi Arabia and the UAE to the BRICS alliance further strengthens its position. As the BRICS alliance now controls over 50 percent of the world’s oil production, it holds substantial leverage in shaping the future of the crude oil industry.
The Bond of Sanctions
While Western sanctions against Russia may have failed in their intended purpose, they have inadvertently strengthened the bonds between BRICS countries. India’s gold reserves have risen significantly, as it seeks a more reliable investment strategy amid soaring inflation in the United States.
In conclusion, India’s complex geopolitical balancing act reflects its commitment to securing its future as a global superpower. Its ability to maintain fruitful relations with both the United States and China, while also fostering ties with Russia and other nations, is a testament to its strategic prowess on the world stage. As the BRICS alliance continues to grow stronger, it has the potential to reshape the global geopolitical landscape and redefine the dynamics of power and influence.
FAQs
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Why is India reluctant to condemn Russia’s actions in Ukraine?
India’s reluctance stems from its historical reliance on Russia for military resources and a policy of non-alignment to avoid entangling in geopolitical conflicts.
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How does India benefit from importing Russian oil?
Importing Russian oil helps India’s economy grow and contributes to freeing up oil supplies in the Gulf region for other countries.
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What is the significance of India’s gold reserves in the BRICS alliance?
India, along with China and Russia, is stockpiling gold, potentially laying the foundation for a new BRICS-backed currency and strengthening the alliance’s economic power.
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Why is India actively pursuing multi-alignment in its foreign policy?
India seeks to enhance its trade and economic growth by participating in various alliances and groupings, aligning with both Western and Eastern powers.
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How does India’s reliance on Russian military resources impact its foreign policy?
India’s substantial reliance on Russian military equipment and technology influences its foreign policy decisions, as it cannot afford to jeopardize its defense capabilities.