In the wake of a new US law that grants President Donald Trump the authority to impose tariffs up to 100% on nations that persist in acquiring Russian oil and gas, Shaktikanta Das, Principal Secretary-2 to Prime Minister Narendra Modi, emphasized the necessity for India to lessen its reliance on imported energy sources.
During his remarks, Das pointed to ongoing initiatives in sectors such as space and nuclear energy, asserting that India’s experiences in these domains provide valuable lessons for countries within the Global South. He identified job creation as a critical issue confronting nearly every nation today.
Das acknowledged India’s considerable dependency on foreign oil and gas imports, stating, “we have to reduce this import dependence.” He highlighted the national offshore exploration initiative known as ‘Samudra Manthan,’ which he believes will significantly boost hydrocarbon exploration and production efforts.
The first phase of the ‘Samudra Manthan’ project, which received approval in July, is set to allocate Rs 84,084 crore until the fiscal year 2030-31. Its primary objectives include enhancing domestic production, diminishing import reliance, and establishing a competitive offshore energy sector.
Das, who has previously held positions as secretary in the Ministry of Finance and as the Governor of the Reserve Bank of India (RBI), made these statements amid ongoing fluctuations in oil prices influenced by conflicts in West Asia. As of Monday, the price of India’s crude oil basket was reported at $120.8 per barrel. Despite multiple increases in fuel prices following the onset of the war, public sector oil marketing companies are incurring daily losses exceeding Rs 500 crore on fuel sales.
Earlier this month, President Trump enacted the Lindsey O Graham Sanctioning Russia and Iran Act of 2026, while the US and China have agreed to extend the Busan Agreement until January 10, 2027, preventing any new tariffs or trade restrictions between the two nations during this period. This situation presents challenges for India, which heavily relies on Russian oil imports.
Currently, India fulfills more than 88% of its crude oil needs through imports, with Russia supplying nearly half of that amount. External Affairs Minister S. Jaishankar has expressed India’s concerns regarding the new US legislation, while US Secretary of State Marco Rubio recently stated that the US is “well-positioned to help regional partners address their energy security challenges.”
At the launch of the India and Emerging Economic Order Forum (IEOF), organized by the Research and Information System for Developing Countries (RIS) and the Delhi School of Economics, Das noted the evolving landscape of India’s space sector. He highlighted the growing involvement of private enterprises in satellite manufacturing, launch services, and various space applications. Additionally, he mentioned India’s ambition to expand its nuclear energy capacity to 100 gigawatts by 2047, a step towards achieving net zero carbon emissions by 2070.
Das commented on the “economic gravity of the world shifting eastwards,” suggesting that the Global South is increasingly asserting its presence in global economics and geopolitics, despite facing significant challenges from recent global disruptions. He argued that while this shift opens new avenues for the Global South, it necessitates innovative ideas and strategies to capitalize on these opportunities.
Describing poverty alleviation efforts within the Global South as “one of the largest improvements in human welfare in modern history,” Das pointed out that these nations are advocating for more inclusive and equitable governance systems. However, he acknowledged the multitude of challenges they face, particularly in job creation.
“A record 1.2 billion young individuals in emerging markets and developing economies will reach working age in the next decade. Increasing investment will be essential to generate adequate job opportunities, especially in rapidly urbanizing areas where employment growth is typically concentrated. Additionally, these countries must navigate rising global protectionist sentiments,” Das remarked.
He also stressed the importance of enhanced collaboration among developing nations to tackle issues such as food security, diversification of trade, deeper integration into global supply chains, energy transitions, maintaining macroeconomic stability, and fostering job creation and economic growth.
Siddharth Upasani serves as a Deputy Associate Editor at The Indian Express, focusing on economic trends and data analysis. His previous experience includes roles at Moneycontrol and the financial newswire Informist. In his leisure time, he enjoys sports, fantasy football, and graphic novels.
