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Dear America, you have no business interfering in India’s oilonomics

Abhishek Kumar Singh by Abhishek Kumar Singh
10 July 2022
in Geopolitics
Dear America, you have no business interfering in India’s oilonomics
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Years after Britishers left meddling in India’s internal issues, Americans jumped in. Part of the fault lies with the Indian government of the day as well. However, when the government changes, Foreign Policies change as well. But, the Biden administration lives in a separate dimension. It is now interfering in India’s oilonomics.

The US asks India to not allow Russian ships

According to a report by ThePrint, 15 days ago, the United States Consulate, the second line of feeder service to the Embassy tried to browbeat Indian authorities by asking them to not allow Russian ships on Mumbai Port. The Consulate General in fact went on to write a letter to the Mumbai Port authority for the same. Consulate General believes that just because the United States has imposed sanctions on Russia, India should also participate in it.

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Meanwhile, the official cited by an online newspaper explicitly stated that a country situated 8,500 miles away from India can’t stop it from transacting with Russia. Stating that the Port authority will only listen to DGS or Coast guard, the official said, “We can’t deny permission to any ship/cargo vessel unless and until we receive directions from either the Directorate General of Shipping or agencies like the Coast Guard. Being the regulatory authority, the DGS has to take a call,” the official said.

Read more: The Russian Oilonomics and how Putin outfoxed the Western Sanctions

The reason behind US’ appeal

For many, it comes off as a puzzling development. On one hand, India-USA ties are growing. Both countries are key members of QUAD. In most of the forums where the United States is present and India is not, our country is pleaded to be present as a guest. Case in point, G7. In fact, during G7, sleepy Joe was woke enough to ensure that PM Modi notices him. Additionally, the Biden administration has also vowed to support India in its own bilateral offense against China. Moreover, the trade between both countries is also increasing at a rapid pace.

A snapshot of monthly U.S.-India goods trade over the last 8 years. pic.twitter.com/qjGurmW4m6

— Richard Rossow (@RichardRossow) July 8, 2022

Shattering Records

Just 2 months after U.S.-India goods trade hits the $11b mark, we cross the $12b mark for the first time.

Overall, up 38% year-on-year. pic.twitter.com/ONcaw8FfXz

— Richard Rossow (@RichardRossow) July 7, 2022

In the wake of so much positivity, why would the Modi government sabotage its relationship with the largest economy in the world? The answer is that we are not sabotaging our relationship. We are prioritizing our own interests over that of the US and its pseudo-moral allies.

Cheap oil is India’s necessity

Just like other countries, India is also trying to recover from a pandemic. Now, essential for any economic recovery is the stable price of things circulating in the economy. Things, especially food products circulate in the economy mainly on vehicles run by fuel. So, it becomes imminent to keep fuel costs in check, otherwise, the hunger crisis can grip the country. To a certain extent, even welfare food distribution schemes lose their shin, because of course they are also transported.

At the same time, United States and OPEC countries are fighting over oil. The US wants to increase its renewable energy production and so it is willing to create shortage in the supply of its own produced oil. OPEC also keeps going back and forth in its oil production. Simultaneously, inflation was also becoming a big political issue in India.

Read more: This is how India is importing oil from Russia even when insurance companies have blocked Russia

Russian oil helped India stave off inflationary pressure

Sanctions on Russia came as a boon for India. Putin administration offered its Ural oil to India at a discounted price. India took advantage of the situation and within few months Russia will be in a position to supply 25 percent of our oil import needs. In fact, India is the second-biggest buyer of Russian oil. Not only that, the oil glut in India has become so big that Indian companies are now even exporting it to other countries.

Read more: By slapping export duty on fuels, the Modi government is playing the role of protector

This is what irked the Biden administration. They must have thought that how could a net importer of the oil could start earning Petrodollars, and simultaneously preparing for eliminating it from the global supply chain. Apparently, they have been trying to stop India for the last 3-4 months. India refused to listen to them. That is why they send their second-grade office in Mumbai to send a letter for them. Off course, what were you expecting from a government led by a person who uses a teleprompter for his daily routine?

Now, the letter has been forwarded to Jaishankar led Ministry of External Affairs (MEA). We all know what Jaishankar will do with this kind of letter.

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