TOKYO -- India's international stature has grown sharply due to its role as the effective leader of the so-called Global South, a shorthand term for emerging and developing economies that do not align with any major power blocs.
The country is chairing the Group of 20 nations this year, with Prime Minister Narendra Modi wasting no time in launching a diplomatic offensive to solidify India's position as a leading global player.
Modi came under the international spotlight in late May when he met with Ukrainian President Volodymyr Zelenskyy on the sidelines of the Group of Seven summit in Hiroshima, Japan. In their first face-to-face talks since Russia's invasion of Ukraine last year, Modi told Zelenskyy that he would "do whatever we can" to resolve the conflict.
After the G7 summit, Modi flew to Papua New Guinea to attend the Forum for India-Pacific Islands Cooperation, held for the first time in eight years. He then traveled to Australia in his first visit in nine years, receiving a passionate welcome from citizens of Indian descent.
India has raised its international profile by trying to please both developed and developing economies. Modi stressed to the leaders of major industrialized nations the importance of unity among democratic nations, while sympathizing with poor countries struggling with inflation and climate challenges. Some call it omnidirectional diplomacy but others see it as just a "please-all" ploy.
Modi is set to make an official state visit to the U.S. on June 21, and Washington is seen as being eager to use the opportunity to drive a wedge between India and Russia, New Delhi's major arms supplier. During Modi's visit, the U.S. and India are expected to sign an agreement for the joint development and production of a fighter jet engine.
Still, India is showing no signs of curbing its large-scale oil imports from Russia. In May, India brought in 1.96 million barrels of Russian crude a day, according to the Press Trust of India news agency. The daily average hit records for eight months in a row.
Last December, the G7 and the European Union imposed an embargo on seaborne Russian crude imports. In addition, the EU in February banned imports of refined petroleum products from Russia, including diesel and jet fuel. These steps are aimed at curbing Moscow's foreign revenues from energy exports.
India began to boost oil imports from Russia in April 2022, less than two months after Russia invaded Ukraine. In the year through March 2023, India imported a daily average of 1.02 million barrels of Russian crude. That represents an elevenfold increase from the previous year and 20% of the country's overall oil imports, according to India's Ministry of Commerce and Industry. As a result, Russia became the nation's largest oil supplier, rising from 10th place a year earlier. Russia was followed by Iraq, which supplied 1.01 million barrels and Saudi Arabia, which sold 790,000 barrels.
India depends on imports for 80% of its crude consumption. Ramping up oil imports from Russia offers India three benefits: curbing inflation, improving its trade balance and diversifying supply.
In terms of inflation, the benefits of Western sanctions are clear: India bought Russian oil at an average price of $83 a barrel in the 2022 fiscal year, compared to $90 for Iraqi oil and $100 for Saudi cargoes.
India's trade balance has been helped by an increase in overseas sales of its petroleum products. While oil prices surged worldwide, imports of relatively cheap Russian oil helped India reap the benefits of widening margins between the import of crude oil and exports of petroleum products. In value terms, the ratio of petroleum exports to crude imports rose from 54% in the 2021 fiscal year to 59% in fiscal 2022 as the former jumped 50% while the latter rose only 30%. In terms of volume, crude imports grew nearly 10% but petroleum exports remained unchanged.
India has diversified its oil suppliers as its dependence on three major Middle Eastern producers -- Iraq, Saudi Arabia and the United Arab Emirates -- declined from 53% to 47%.
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