The docking of the Shivalik, an Indian-flagged Very Large Gas Carrier (VLGC), at Mundra Port in Gujarat represents more than a routine commercial arrival. In the current fractured geopolitical climate, it serves as a tangible demonstration of India’s remarkable leverage in navigating the complexities of the global energy landscape. As tankers traverse the volatile lanes of the Strait of Hormuz, energy security has transitioned from a matter of pure commerce into a pillar of pragmatic diplomacy.
Iran has shown a distinct willingness to facilitate India-bound shipments while excluding some others, signaling New Delhi’s unique status in the region. Simultaneously, while India firmly maintains that its procurement decisions are based strictly on strategic autonomy and national interest, the recent signal from the United States regarding a 30-day waiver for Russian oil already in transit acts as a tacit recognition of India’s critical weight in the energy market. Furthermore, Russia has demonstrated a readiness to divert oil to India to offset West Asian supply disruptions, solidifying a partnership that serves both nations’ immediate economic needs.
These international concessions highlight a global recognition of New Delhi’s influence. India remains perhaps the only major power capable of maintaining warm working relationships with the Kremlin, the White House, and competing factions within the Gulf simultaneously.
The Weight of Historical Dependence is significant, and India’s energy policy was historically defined by structural vulnerabilities. As the world’s third-largest consumer of crude oil, importing roughly 85–90 per cent of its requirements, the Indian economy was once acutely sensitive to oil shocks. However, a strategic pivot toward massive diversification has fundamentally altered this narrative. India’s reach has become truly global, expanding its import network from 27 countries to over 40 in just a few years, with interests now stretching as far as Argentina, Guyana, Suriname, and Venezuela.
The most dramatic shift occurred with Russian crude; before 2022, Russia accounted for less than 2 per cent of India’s imports, but that share has since peaked at nearly 36per cent in the last fiscal year. By absorbing Russian barrels that would otherwise have lacked a market, India did more than secure an alternate supplier; it arguably prevented a global price spike due to reduced supplies in the market that would have devastated developing nations.
This leverage is not accidental; it is a calculated exertion of national will under the Narendra Modi Government. India’s status as the fastest-growing major economy makes its energy demand a prize for every exporter. Whether the US seeking to export more LNG or Russia looking for a reliable long-term partner, or West Asia wanting to continue the flow, India sits firmly at the centre of the negotiating table.
Ultimately, India is turning a traditional vulnerability of energy dependence into a tool of geopolitical influence. Its sophisticated ability to navigate adverse situations refutes any notion that it lacks significant sway on the world stage. As the global order transitions toward multipolarity, New Delhi’s issue-based alignments serve as a blueprint for how middle powers can assert themselves in a fractured landscape, prioritising national interests while stabilising global markets.
While the world hopes for a de-escalation of the current crises, India must continue to institutionalise its strengths to maintain leverage during the inevitable volatilities of the oil and gas markets. India can do it by continuing to expand its supplier basket to further reduce regional over-reliance, building robust strategic petroleum reserves to buffer against sudden shocks, accelerating domestic production, and scaling green hydrogen and biofuels to transition from a price-taker to a leader in the new energy economy.
Pankaj Sharma is Former Additional Director, Petroleum Planning and Analysis Cell (PPAC), & Former Chief General Manager, HPCL
Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth