Lessons to learn from Middle East Crisis.
The Middle East crisis started after the assasination of Iran's supreme leader, Ayatoullah Khamenei. The escalation created massive havoc across the world. Iran, as a strategic move to counter Israel, the USA and the countries who did not support Iran during the conflict, has attacked the UAE by bombing and closed the Strait of Hormuz. It is a devastating trade loss for many countries, as most of the goods were on halt and almost 20% of world trade of oil and gas happens through the Strait of Hormuz.
How is India dealing with the Middle East crisis ?
After the Middle East crisis, India's economy slipped to 6th position from 4th. The crisis hit hard on LPG gas and oil supplies. Almost 60% of gas is imported from the Middle East region, which passes through the Strait of Hormuz directly. To counter that, India has started importing from 40 countries with 70% of energy coming from new routes. The idea of domestic production has increased upto 25% after the crisis.
India is totally dependent on imports of oil and gas with an almost 89% dependency that has created economic losses. Some experts predict the Middle East crisis could sustain for a long duration, and it will be the beginning of the electronic goods market to rise effectively. The increase in prices has hit every household, food businesses, black market LPG gangs and increased price rates.
What India should do to survive future problems of energy.
* Reduction of dependency on world imports and creating our own resources.
* From switching to electric based cooking equipment and EV vehicles.
* Having good relations with other nations to get good import supplies.
* Focus more on Research and Development to predict crises early on and take adequate measures to handle crises.
* Finding alternative routes to reduce dependency on the Strait of Hormuz in long time.
* Creating a strong naval presence and safeguarding trade and goods.
* Strategic foreign policy plan before any crisis.
The global crisis has impacted the Indian economy and disruptions across all sections of society, from job loss to price rises. The crisis is a lesson on oil and energy to start domestic supplies more. The self-reliance concept has to aggressively be pushed in the country so that the world depends on India rather than we depend on others.
