With the Middle East conflict causing disruptions in oil supplies and global price hikes, South Asian nations are looking towards India, rather than China, to address the fuel crisis. The prolonged disruption poses challenges for South Asian economies with limited buffers, leading to sustained price pressures and fiscal strain. How India and China respond to the crisis will influence regional alignments in the long term, according to an article by the Organisation for Research on China and Asia.
For smaller South Asian countries heavily reliant on Gulf-based oil imports and lacking shock-absorbing capacities, the value of a regional power lies in its ability to respond swiftly and reliably during crises. Despite strong economic ties with China, these nations have consistently turned to India as their preferred partner and primary responder in times of crisis, leveraging India’s quick and reliable assistance for strategic influence.
India and China have significantly expanded their energy footprints in South Asia over the past decade, albeit through different approaches. China’s focus has been on large-scale infrastructure development under the Belt and Road Initiative, investing in ports, pipelines, and refining capacity to enhance connectivity. In contrast, India has adopted a less financially intensive but functional strategy, such as building cross-border energy pipelines with neighboring countries like Bangladesh and Nepal.
India’s proactive role as a regional first-responder is evident in its supply of crude oil, LPG, LNG, petrol, and diesel to neighboring countries facing acute fuel shortages. India has supplied petroleum products to Sri Lanka, diesel to Bangladesh through the Friendship Pipeline, and is considering additional supply requests from Nepal and the Maldives. This proactive approach, often termed “energy diplomacy,” showcases India’s strategic use of energy resources as a tool for regional statecraft.
