‘India needs to diversify its sources of energy needs’
The West Asia conflict was a short-term supply chain problem, but it has taught that countries like India should diversify the sources of their energy needs, NITI Aayog vice chairman Ashok Kumar Lahiri said on Tuesday.
Releasing the Eighth Edition of ‘Trade Watch Quarterly’, Lahiri further said he is hopeful that soon India and the US will finalise and sign a bilateral trade agreement.
He said the NITI Aayog has also suggested that when India negotiates a free trade agreement with any country or bloc, then it should include a chapter on pharmaceutical products. “So, it is like you have fever, but if it is influenza, you will not be very worried, you know,” he said.
“In three days it will get all right, but if you hear that it’s typhoid or jaundice, you will be very worried. So, the West Asia crisis has turned out to be influenza,” Lahiri said.
The war in West Asia broke out on February 28 when the US and Israel attacked Iran, and the latter retaliated, leading to a blockade of the Strait of Hormuz. The strait is the world’s primary oil chokepoint as it handles nearly a fifth of global oil and LNG supplies.
“It was a short-term problem but it has taught us a few lessons. You do not put all your eggs in one basket, so we need to diversify our sources of imports, as well as our exports,” he said.
The United States on last Thursday lifted its blockade of Iran, allowing oil tankers to move through the Strait of Hormuz as a tentative agreement to end the war took effect. The channel had been largely unusable for months, but shipping began to resume soon after a deal came into force.
On June 18, President Donald Trump signed an agreement with Iran that calls for Tehran to dilute its stockpile of highly enriched uranium and waives US-backed sanctions on the country, immediately allowing Iran to sell its oil freely in a major concession from Washington.
