India has joined the International Energy Agency as an associate member. The development makes the Paris based body more relevant. It also reflects India’s move towards the center stage of the global energy dialogue.
Rising incomes, population growth and urbanization, provide a huge potential for energy demand growth in India. We can harness this opportunity in the
Background to the International Energy Agency:
- IEA is an inter-governmental organization
- It was setup in 1974 after the OPEC cartel shocked the world with a steep increase in oil prices
- It acts as the energy policy advisor for the 29 member countries
- IEA is involved in promoting alternate energy sources, formulation of rational energy policies and multinational energy technology cooperation
- It is also focused towards providing uninterrupted power supply to all its citizens
India and International Energy Agency:
- With India joining as a member, International Energy Agency now formally covers 70% of the world's energy consumption
- This increases the relevance of IEA in the current global scenario
- The future of global energy market cannot be discussed without including India’s energy needs
- India is already a partner at the International Energy Agency, but upgradation as an associate member will enhance its negotiating status with major oil suppliers and consumers
- It provides an opportunity for India to act as a voice of the developing world
- IEA has helped promote India’s interests and concerns as the third largest consumer of energy
- The association will bring about mutual benefits for all
- IEA act as a platform which India can use to strengthen ties with key energy players the world over
India’s stand on issues that concern global oil trade:
- India’s oil minister has already asserted India’s importance as a key buyer of global oil
- India has affectively challenged the imposition of Asian premium, a practice in which oil exporters charge a higher price from developing countries as compared to developed countries
- Supply terms with Gulf suppliers have been renegotiated
