The Hindu Editorial Analysis- 4th June 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

A strategy fuelled by vision, powered by energy

Why in News?

India has recently claimed the title of the world's fourth largest economy, surpassing Japan. Since 2014, under the guidance of Prime Minister Narendra Modi, India has more than doubled its GDP to $4.3 trillion by 2025. This growth is the result of a long-term strategy focused on reforms, resilience, and self-reliance. Today, India is not only the fastest-growing major economy but also an emerging global strategic power. The energy sector, in particular, has seen a significant transformation during the first year of Modi's third term, building on a decade of foundational changes. With a remarkable 6.7% growth rate in the last quarter, India's growth trajectory is unparalleled by any other country in the near future.

India’s Energy Position

• Energy and Oil Consumer: India ranks as the 3rd largest energy and oil consumer in the world.
• Oil Refiner and LNG Importer: The country is the 4th largest oil refiner and 4th largest LNG importer globally.
• Future Energy Demand: Energy demand in India is projected to grow 2.5 times by 2047.
• Global Energy Demand: India is expected to account for 25% of the increase in global energy demand.

Energy Security = Development Security

Energy security is crucial for national development, ensuring that the economy has reliable, affordable, and sustainable energy sources.

• Availability: Ensuring a constant and sufficient supply of energy.
• Affordability: Making sure energy is priced reasonably for consumers and businesses.
• Sustainability: Focusing on renewable and clean energy sources to protect the environment.

To achieve these goals, the approach includes:

• Diversifying energy sources and suppliers: Reducing dependence on a single source or supplier to enhance security.
• Increasing domestic production: Boosting local energy production to meet growing demands.
• Shifting to renewable energy: Expanding the use of solar, wind, and other renewable energy sources.
• Ensuring affordability: Keeping energy prices stable and within reach for all consumers.

Upstream Oil and Gas Sector Growth

The upstream oil and gas sector in India is witnessing significant growth and expansion, with a focus on increasing exploration acreage, unlocking vast reserves, and implementing various reforms to enhance efficiency and attract investment. Here are the key highlights:

• Exploration Acreage: The exploration acreage in India is set to double from 8% in 2021 to 16% by 2025. The government aims to expand the exploration area to 1 million square kilometers by 2030.
• Oil and Gas Unlock Goal: The target is to unlock 42 billion tonnes of oil and gas resources.
• Reforms and Policy Changes: Various reforms have been implemented to boost the upstream sector, including:
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  • Reduction of 'No-Go' Areas: The 'No-Go' areas have been cut by 99%, allowing for increased exploration in previously restricted zones.
  • Simplified Licensing: The Open Acreage Licensing Policy (OALP) has simplified the licensing process, making it more attractive for investors.
  • Pricing Incentives: New gas wells are offered pricing incentives to encourage production.
• Gas Pricing and Contracts: Recent changes in gas pricing have improved availability for city gas networks and industries. The new pricing mechanism ties prices to 10% of the Indian crude basket plus a 20% premium for new wells. Revenue-sharing contracts have also been introduced to allow shared infrastructure among exploration companies, reducing costs and speeding up production.
• Technology and Exploration Advances: Various initiatives are being undertaken to improve exploration confidence and capabilities, including:
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  • National Seismic Programme:. comprehensive seismic survey program to gather data on potential reserves.
  • Mission Anveshan: An initiative aimed at enhancing exploration activities.
  • Airborne Gravity Gradiometry (AGG):. technology used to identify potential oil and gas reserves.
  • Continental Shelf Mapping: Mapping of the continental shelf to identify potential offshore reserves.
• Recent Discoveries and Collaborations: Several significant discoveries and collaborations have been made in the upstream sector, including:
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  • ONGC and Oil India: Over 25 hydrocarbon discoveries in the Mumbai Offshore, Cambay, Mahanadi, and Assam regions.
  • Mumbai High Output Increase: Oil output increased by 44% and gas output by 89% through partnerships, such as with BP.
  • New Fields: Discovery of important new fields like Suryamani and Vajramani on the west coast and Utkal and Konark in east coast deep waters, adding a total of 75 million tonnes of oil equivalent and 2,700 million cubic meters of gas to reserves.
  • Data Center at University of Houston: Establishment of a data center to help foreign investors access India's exploration data, enhancing transparency and attracting investment.

Downstream Infrastructure Expansion

• Pipelines: India has a vast network of 24,000 km of product pipelines, ensuring efficient transportation of fuels across the country.
• Retail Fuel Outlets: Nearly 96,000 retail fuel outlets are operational, providing easy access to fuels for consumers.
• Strategic Reserves: The country has strong strategic reserves and LPG storage facilities, enhancing energy security.
• Daily Visits: Over 67 million people visit petrol pumps daily, reflecting the large-scale and efficient distribution of fuel.

City Gas Network Growth

The city gas network in India has seen significant growth and expansion from 2014 to 2025, with a substantial increase in the number of geographic areas covered, Piped Natural Gas (PNG) connections, and CNG stations. Here are the key highlights:

• Geographic Areas Covered: The number of geographic areas covered by the city gas network has increased from 55 in 2014 to 307 in 2025.
• Piped Natural Gas (PNG) Connections: PNG connections have surged from 0.25 crore (2.5 million) in 2014 to 1.5 crore (15 million) in 2025.
• CNG Stations: The number of CNG stations has grown significantly, with over 7,500 CNG stations operational nationwide by 2025.
• Unified Pipeline Tariffs: The introduction of unified pipeline tariffs has facilitated affordable access to city gas networks, even in remote states.
• Network Expansion: The rapid expansion of the city gas network has ensured that consumers across the country have access to clean and affordable gas.

Overall, the growth of the city gas network in India reflects a concerted effort to enhance energy access, promote cleaner fuels, and improve infrastructure for natural gas distribution.

The focus of the green strategy

Biofuels: Core of India’s Green Strategy

• Ethanol Blending: Increased from 1.5% in 2013 to 19.7% in 2025.
• Blending Quantity: Rose from 38 crore litres to 484 crore litres.
• Benefits Achieved: ₹1.26 lakh crore saved in foreign exchange, 643 lakh MT reduction in carbon emissions.
• Payments: ₹1.79 lakh crore to distillers and ₹1 lakh crore to farmers.
• Ethanol Feedstock Diversification: Enhancing resilience of ethanol production by diversifying feedstocks from molasses to maize.
• SATAT Initiative: Boosting Compressed Biogas (CBG) with over 100 CBG plants commissioned.
• Target: 5% CBG blending by 2028.
• Support: Biomass procurement aid and pipeline connectivity for circular energy transition.

Green Hydrogen: India’s Next Frontier

• Green Hydrogen Production: 8.62 lakh tonnes.
• Electrolyser Tenders Awarded: 3,000 MW.
• Landmark Project: IOCL Panipat: 10 KTPA.
• Key PSUs Involved: IOCL, BPCL, HPCL, GAIL, NRL.
• Notable Unit: NRL Assam – First in Northeast.
• PSUs Leading the Shift: PSUs like IOCL, BPCL, HPCL, GAIL, and NRL are leading the shift to clean hydrogen energy.

Natural Gas Network & Reforms

• Pipeline Length: Increased from 25,000 km to a target of 33,000 km by 2030.
• Reforms Introduced: Strategic pricing changes and inclusion of gas in the ‘No Cut’ category for domestic and transport use.
• Gas Production: Increased from 28.7 BCM in 2020–21 to 36.4 BCM in 2023–24.

Policy Reforms: Making Upstream Competitive

• Oilfields Act Amendment (2024): Enabled hybrid leases allowing renewables with hydrocarbons.
• Discovered Small Fields (DSFs): Simplified contracts with lower compliance burden, unlocking marginal fields across basins.

Digital Infrastructure: PM Gati Shakti Integration

• Digital Mapping: Over 1 lakh energy assets and pipelines digitally mapped.
• Alignment: Integrated with National Master Plan for real-time coordination.
• Cost Savings: Achieved ₹169 crore+ in cost savings via route planning. 
• Projects Optimised: Projects like Indo-Nepal Pipeline and Samruddhi Utility Corridor optimised for efficiency. 

Conclusion

 The conclusion emphasizes the centrality of affordability in India's energy policy under PM Modi's leadership. It highlights the government's efforts to keep energy prices stable and accessible to citizens, even in the face of rising global prices and inflation.

India-Australia defence ties beyond American shadows

Why in News?

Australia’s acknowledgment of India as a “top-tier security partner” is crucial for navigating a world where U.S. security assurances are becoming more uncertain. This recognition is particularly significant in the context of shifting global dynamics, especially with the potential return of Donald Trump to the White House. 

 Trump’s previous presidency brought considerable upheaval to the global security framework, impacting alliances and security commitments. His approach, emphasizing burden-sharing and transactional relationships, has raised concerns about the reliability of U.S. security guarantees. In this evolving landscape, Australia’s partnership with India becomes increasingly important. 

Strengthening Defence Ties between India and Australia

India and Australia, both middle powers in the Indo-Pacific region, have a significant opportunity to enhance their defence relationship. Australia’s strategic location between the Indian and Pacific Oceans aligns well with India’s maritime interests and aspirations in the region. This geographical complementarity boosts both nations’ capabilities to tackle shared security challenges, particularly in light of China’s assertiveness.

The strengthening of the defence partnership between New Delhi and Canberra is a positive development in this context. Over the past ten years, both nations have established a strong bureaucratic foundation for this relationship, with key institutional frameworks such as the Comprehensive Strategic Partnership and the 2+2 ministerial dialogue. Practical cooperation has progressed through various agreements and joint military exercises, reflecting a decade of careful relationship-building.

However, challenges persist. Neither New Delhi nor Canberra can fully fill the security gap left by the United States on their own. India faces significant continental challenges, including border disputes with China and threats from Pakistan. At the same time, Australia is undergoing major changes in its strategic role and military capabilities, including the AUKUS agreement and increased outreach to smaller island states.

In this context, both countries need to focus on immediate priorities for regional security cooperation. This includes:

• Rebalancing defence engagement across military services.
• Enhancing India’s defence presence in Canberra.
• Elevating ground-level ideas and operational insights.
• Exploring cooperation in the maintenance and repair of naval vessels.
• Resetting defence industry collaboration.

By addressing these priorities, India and Australia can strengthen their partnership and contribute to regional security in an increasingly complex global landscape.

 Strategic Complementarity of Australia and India 

• Strategic Geography: Australia’s strategic location between the Indian and Pacific Oceans complements India’s maritime ambitions in the Indo-Pacific region. This geographical synergy enhances both nations’ capabilities to address security challenges. 
• Coalition Operations: The Australian Defence Force (ADF) has extensive experience in coalition operations, which can significantly enhance Indian military capabilities. For instance, the recent air-to-air refuelling arrangement between the two countries extends operational reach and effectiveness. 
• Pacific Island Relations: Australia’s established relationships with Pacific Island nations align with India’s growing interests in the region. This alignment facilitates joint initiatives and strengthens both countries’ influence in the Pacific. 
• Shared Concerns: Both Australia and India share concerns about China’s assertiveness in the region. This common concern fosters a collaborative approach to regional security and stability. 
• Sovereign Resilience: Australia and India hold a mutual vision for sovereign resilience and regional stability, further strengthening their strategic partnership. 

 Strengthening the New Delhi-Canberra Defence Partnership 

• Japan, South Korea, and Europe: While these are valuable partners for India, they may not offer the same level of strategic alignment as the New Delhi-Canberra defence relationship. 
• Bureaucratic Foundations: The New Delhi-Canberra defence relationship has strong bureaucratic foundations, built over the past decade. This provides a solid framework for cooperation. 
• Leadership: Successive Australian Prime Ministers and India’s Prime Minister Narendra Modi have played a crucial role in elevating this partnership. Their leadership has strengthened ties and mutual trust. 
• Top-Tier Security Partner: Canberra’s recognition of New Delhi as a “top-tier security partner” reflects the growing importance of this relationship in the current global security landscape. 
• Navigating Conditional Security Guarantees: In a world where American security guarantees are perceived as increasingly conditional, the New Delhi-Canberra defence relationship provides a reliable and strategic alternative for both nations. 

 Bureaucratic Foundations and Practical Cooperation 

• Key Institutional Frameworks: The Comprehensive Strategic Partnership (CSP) established in 2020 and the 2+2 ministerial dialogue initiated in 2021 are crucial for high-level strategic coordination between India and Australia. 
• Practical Cooperation Agreements: The Mutual Logistics Support Agreement (MLSA) and the November 2024 Air-to-Air refuelling arrangement are examples of practical cooperation that streamline logistics and enhance operational capabilities during joint exercises and humanitarian missions. 
• Military Exercises: Joint military exercises such as AUSTRAHIND (Army), AUSINDEX (Navy), and participation in multilateral exercises like Pitch Black and Malabar demonstrate the depth of military cooperation and the commitment to strengthening defence ties. 
• Decade of Relationship Building: The progress in practical cooperation and military exercises reflects a decade of careful relationship-building, emphasizing the importance of sustained efforts in enhancing defence partnerships. 

 Limitations and Challenges 

• Security Gap: Neither New Delhi nor Canberra can fully fill the security void left by the United States on their own. Both countries rely on U.S. support for various aspects of their security frameworks. 
• India’s Continental Challenges:India faces significant security challenges on its continental borders, including: 
  • Border Dispute with China: Ongoing tensions and conflicts along the Line of Actual Control (LAC) with China pose a serious challenge to India’s security. 
  • Threats from Pakistan: Both conventional military threats and sub-conventional threats, such as terrorism, from Pakistan remain a critical concern for India. 
• Australia’s Strategic Overhaul:Australia is undergoing major changes in its strategic role and military capabilities, including: 
  • Armed Forces Overhaul:. comprehensive review and restructuring of its armed forces to meet new strategic demands. 
  • AUKUS Agreement: Acquisitions and collaborations under the AUKUS pact with the United Kingdom and the United States, enhancing Australia’s military capabilities. 
  • Maritime Outreach: Increased engagement and outreach to smaller island states within its maritime geography, expanding its strategic footprint. 

 Immediate Priorities for Regional Security Cooperation 

 To strengthen their partnership and enhance regional security, India and Australia should focus on the following five aspects: 

 1. Rebalance Defence Engagement Beyond Silos 

• Joint Military Exercises: Conduct joint military exercises that involve all three services (Army, Navy, and Air Force) to simulate real-world operations and enhance interoperability. 
• Dedicated Forum for Joint Staff Talks: Establish a dedicated forum for joint staff talks to facilitate regular communication and coordination between the armed forces of both countries. 
• Major Combined Joint Exercise: Aim to conduct a major combined joint exercise within the next decade that thoroughly tests the collective capabilities of both nations and strengthens their defence partnership. 

 2. Enhance India’s Defence Footprint in Canberra 

• Upgrade Defence Adviser Position: Elevate the Defence Adviser (DA) position in Canberra to a one-star rank to reflect the strategic importance of the India-Australia defence relationship. 
• Include Army and Air Force Personnel: Strengthen the DA position by including dedicated Army and Air Force personnel as assistants to ensure balanced service participation and engagement. 
• Dedicated Personnel for Pacific Island Engagement: Assign dedicated personnel to handle engagement with Pacific Island nations, a role currently managed by the DA in Canberra, to enhance focus on this strategic area. 

 3. Elevate Ground-Level Ideas and Operational Insights 

• Ground-Up Ideas: Encourage the promotion of ground-up ideas from working-level personnel in defence dialogues to foster fresh and actionable thinking. 
• Inclusion of Uniformed Professionals: Include more uniformed professionals with operational experience in discussions and create spaces for classified discussions to facilitate practical insights and recommendations. 
• Fellowships and War-Gaming Exchanges: Initiate fellowships for staff college graduates and regular war-gaming exchanges between the two countries to enhance mutual understanding and build a foundation for genuine cooperation. 

 4. Explore Cooperation in Maintenance, Repair, and Overhaul (MRO) 

• Deepen MRO Cooperation: Strengthen cooperation in the Maintenance, Repair, and Overhaul (MRO) of naval vessels, leveraging India’s capabilities demonstrated through contracts with the U.S. and British navies. 
• Joint Manufacturing and Supply: Collaborate on manufacturing and supplying patrol boats for small island security forces in the Indian Ocean Region and Pacific to reinforce joint intentions and capabilities. 
• Technology and Platform Exposure: Focus on MRO and patrol boat collaboration to generate significant second- and third-order effects through exposure to each other’s technologies and platforms, enhancing mutual capabilities. 

 5. Reset Defence Industry Collaboration 

• Engage with Australian OEMs: Encourage Indian OEMs to engage with Australian offices of major Original Equipment Manufacturers (OEMs) to deepen cooperation within the Micro, Small and Medium Enterprises (MSME) sector. 
• Collaborate with Defence Startups: Foster collaboration with defence and aerospace startups in both countries, focusing on cutting-edge technologies, components, and dual-use technologies for joint innovation and growth. 
• Joint Innovation and Growth Potential: Leverage the work of defence and aerospace startups in both countries to explore joint innovation and growth opportunities, capitalizing on their expertise in emerging technologies. 

 Conclusion 

 Aligning the MSME sectors of both Australia and India presents a significant opportunity for enhancing defence cooperation. Adopting a model similar to the U.S.-India INDUS X framework could facilitate this alignment and promote collaborative efforts in the defence sector.