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Indian economy has grown at a rapid pace in the last five years and so has the demand for energy of a billion people. India imports 70% of its domestic crude oil requirements. The bulk of India's oil imports come from West Asia. The supply routes pass through the choke point of Strait of Hormuz. Any disruption in these will severely impact our national interest. Hence there is a need to diversify our supply sources in order to reduce our dependence on Gulf oil. Central Asian Region being rich in energy resources and located in our extended neighbourhood offer a tempting prospect.
The CARs situated on the eastern flank of the Caspian Sea have significant oil and natural gas reserves to be considered as a possible source of diversification for countries heavily dependent on energy imports from West Asia and elsewhere . While estimates of reserves vary widely across different sources, there is a consensus that the region has much potential.
Energy is the engine of economic growth. Availability of energy is the key to sustainable development, and has a direct impact in most aspects of our daily life. Inadequacy of energy supply affects very adversely vital and essential requirements of any society. Hence, there is an urgent need to enhance substantially the energy availability at a rapid pace so that aspirations of those who have remained at the fringes of development are able to benefit from access to this important input.
The Central Asian Republics comprising of Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan encompass the vast geo- political space north of India. When part of the USSR, the region had stability and was thus of little interest to the international world order. Relations with India were determined with the framework of Indo-USSR relations as existed between New Delhi and Moscow. The post - USSR environment has changed all this, requiring New Delhi to re- establish relations with the five newly independent nation- states on the basis of new realities.
It is remarkable that while energy resources are getting increasingly scarce in the rest of the world, new oil fields are being discovered with great regularity in Central Asia. Some experts maintain that Central Asian resources may be difficult to reach because of it is the largest land mass in the world, which is land locked. This is both a challenge and an opportunity, because in today's technology driven world, it is not always necessary to transport material. This is the logic of investment abroad and organising production facilities there.
India has long-standing historical ties with Central Asia that encompasses the political, cultural, economic and religious dimensions. The impact of regional developments in Central Asia on India's history has been longstanding and substantial.
According to Mr. Yashwant Sinha, Former Minister of External Affairs, Government of India, 'India's increasing engagement with Central Asia is aimed at promoting peace and mutual prosperity. Central Asia can once again be a bridge between the East and West, if its neighbourhood
