India is accelerating efforts to build resilient energy supply chains by collaborating with global partners to soften the blow from geopolitical conflicts and the energy crisis that are threatening economies across the globe, Indian Prime Minister Narendra Modi said May 16.

“First came COVID-19, and then came wars, and now an energy crisis. This is turning out to be a decade of disasters. If things don’t normalize soon, a lot of efforts and successes that we achieved over many decades will go waste and hit the world economy,” Modi told a gathering in the Netherlands during his visit to Europe, which also includes visits to Norway, Sweden, and Italy.

India is witnessing a rise in calls for austerity to curb energy use, alongside flight cancellations and a reduction in imports, as supply chain disruptions stemming from the West Asia conflict have increased freight and insurance rates, while rupee depreciation is making imported inputs more expensive.

With India importing more than 85% of its crude oil needs, elevated global energy prices are threatening to sharply inflate the country’s oil import bill and further weaken the domestic currency, which has lost more than 5% since the start of the Middle East conflict, analysts and industry experts told Platts, part of S&P Global Energy, last week.

On May 10, Modi told a gathering in India that the country should reduce gasoline and diesel consumption through measures such as remote work and virtual meetings, as rising oil prices were placing significant pressure on foreign exchange outflows.

“The growing strategic convergence between India and Europe and underscored the importance of trusted partnerships in an increasingly complex and uncertain global environment. India and Europe must work together to build resilient and diversified supply chains,” Modi said while addressing a European Round Table for Industry (ERT) in Gothenburg on May 17.

“India-EU Free Trade Agreement would further unlock new opportunities for both sides,” he added.

Modi highlighted India’s ambitious infrastructure and energy transformation, including large-scale investments in transport, logistics, renewable energy, green hydrogen, and nuclear power. He invited European industry leaders to partner with India in areas such as telecoms and digital infrastructure; AI, semiconductors, electronics, and deep tech manufacturing; green transition and clean energy; infrastructure, mobility, and urban transformation; and healthcare and life sciences, an Indian government statement said May 17.

Strategic partnerships
India and the Netherlands are also actively cooperating to counter these disruptions by building trusted, transparent, and future-ready supply chains, with a specific focus on clean and renewable energy, Modi said.

Modi and Prime Minister of the Netherlands Rob Jetten agreed to elevate the India-Netherlands bilateral relationship to a strategic partnership by following focused, time-bound initiatives and a joint plan of action. To this end, India and the Netherlands adopted the Roadmap of India-Netherlands Strategic Partnership for the next 5 years (2026-2030), the Indian government statement said.

“With a view to further strengthening the partnership between India and the Netherlands in the field of renewable energy, the two leaders welcomed the establishment of a Joint Working Group under the Memorandum of Understanding on Renewable Energy which provides ample scope for a diversified agenda for cooperation in renewable energy, including innovative solar energy, green hydrogen, storage and investments in the renewable energy sector to facilitate energy transition,” it added.

In Gothenburg, Modi met with Robert Maersk Uggla, the chairman of Maersk.

“We discussed the great opportunities in India and increased investment, especially in sectors such as port infrastructure, logistics, and more,” Modi said on social media platform X.

According to S&P Global Energy CERA, India’s shipbuilding industry accounts for less than 1% of the global shipping market. This contrasts sharply with China, which holds a 61% share of the order book in major commercial shipping segments. South Korea and Japan also have significant global influence, with advanced technological capabilities and strong export pipelines. India’s commercial fleet is much smaller than China’s large merchant marine, underscoring the country’s growth potential in shipyards.

India has pledged to secure 1,000 commercial ships over the next decade as part of a national push to expand its shipbuilding industry and maritime sector, according to Rahul Kapoor, head of shipping and metal analytics at CERA.

New Delhi is also promoting the development of integrated shipbuilding clusters — industrial parks with state-of-the-art facilities and skill-development centers designed to stimulate innovation and productivity. India plans to create eight maritime clusters, comprising five new facilities and three expanded ones. Backed by state governments and with pre-secured land, these clusters will host activities ranging from manufacturing and equipment production to insurance and leasing services, Kapoor said.
Source: Platts