Diplomatist Magazine Diplomatist March 2019 | Page 24

SPECIAL REPORT
needs to be pursued in a carbon controlled
environment. Consequently, India has
emerged as a new market for energy and
resources which implies that this sector will
become the most significant component
driving India-Australia relations.
India’s energy market which offers
immense potential has a lot to deliver to
Australia. The Indian Government’s eff orts to
enhance domestic exploration and production
of natural gas and oil, a shift to renewable
energy and boost in domestic coal production,
still can’t address its pressing energy needs
without import. India’s heavy reliance on
import for its hydrocarbon especially petrol,
natural gas and clean coal continues. India has
been dependent on Middle East sources for a
long period. However, over the past decade,
there has been a concerted eff ort to explore
energy sources elsewhere especially in Latin
America, Africa and Caspian basin. Australia
has emerged as an import destination for
India’s energy sources as it off ers immense
potential which has yet to be tapped.
India’s reliance on coal continues for its
energy needs. India’s coal sector is beset with
major ineffi ciencies, productivity stagnation
and obsolete technology. According to the
International Energy Agency, coal will
continue to make the largest contribution
to electricity generation in India through
to 2040. Despite India’s progress on the
domestic production of coal, Australia’s
thermal coal will continue to be a signifi cant
export for India’s energy market due to its
less pollutant qualities. Uranium is another
Australian export to India’s lucrative energy
market. With the Australia-India civilian
nuclear deal, the road for the sale of enriched
uranium has been cleared. After the nuclear
deal, the first consignment of Australian
uranium has made its way to India’s nuclear
reactors.
But Australia offers massive reserves
in the form of natural gas that needs to be
tapped. Prime Minister Narendra Modi has
made it clear that India needs to shift to a
gas-based economy. Natural gas has less
carbon content and its suits India given its
urgency to reduce the CO2 emissions for
clean air, its fast-expanding cities and India’s
commitment to reduce the carbon emission at
the 2015 Paris Climate Summit. Australia’s
natural gas reserves can reduce India’s energy
demand mainly by exporting coal, uranium
and gas along with innovative technology and
practices in the mining and renewable sectors.
Converging security interests and great
game in the Indo-Pacifi c
The growing India-Australia partnership
should be seen in the context of unfolding
geostrategic game in the Indio-Pacific
region. The highest level of strategic and
policy-making body in both countries have
highlighted the scope for India and Australia
to collaborate on strategic issues. According
to the 2017 Australian Foreign Policy White
Paper, India is strategically signifi cant for
Australia in the Indo-Pacifi c region. Over the
past decade and a half, there has been constant
development in this direction from both
sides. Both nations converge on a number of
security challenges which is mainly tackling
the Islamist fundamentalism and terrorism,
ensuring stability in Afghanistan, stabilising
Pakistan as a civilian-dominant secular
24 • Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 3 • March 2019, Noida