The Hindu Editorial Analysis- 23rd April 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Exploring India’s potential in the Arctic region

Why in News?

India should have a say in the upcoming commercial prospects in the Arctic, ensuring that its resources are not misused.

Introduction

• Global trade is currently facing sharp fluctuations, with increasing uncertainties originating from the U.S.. This situation is prompting countries to explore alternative trade strategies more vigorously.
• Concurrently, there is a growing emphasis on partnerships related to supply chains and trade routes, driven by the disintegration of regional alliances and the escalating impact of climate change.
• The Arctic region, often regarded as a barometer for climate change, is gaining prominence not only for its environmental significance but also for its geopolitical potential.
• As sea levels continue to rise and new navigable routes emerge, the Arctic is poised to offer new strategic and commercial opportunities.
• In the coming decades, it is expected to become a crucial energy resource for the Global South.
• While it is vital to avoid reckless exploitation of the Arctic's natural reserves, India must assert its interest in shaping the future commercial landscape of this critical frontier.

Arctic Sea Ice & Strategic Importance

NASA reports that Arctic sea ice is diminishing at a rate of 12.2% per decade compared to the 1981–2010 average. This rapid melting is facilitating access to the Northern Sea Route (NSR), which has the potential to revolutionize global shipping. The NSR, connecting the Atlantic and Pacific Oceans, is emerging as the shortest route between Europe and Asia.

• India's Perspective on the NSR. India views the NSR not merely as an economic opportunity but also from a strategic and geopolitical standpoint.

Trade Route Shift: Strategic Implications of NSR

India’s Domestic Measures

• In the 2025-26 Budget, the Indian government allocated $3 billion to the Maritime Development Fund.
• The focus of this fund includes:
• Shipbuilding clusters
• Expansion of Arctic-capable fleets
• Investment in ice-breaking ships
• Development of resilient infrastructure

Action Needed

Scientific & Climate Impact

• India is actively researching the Arctic’s impact on the monsoon and agriculture in collaboration with various institutions, including:
• Institute for Governance and Sustainable Development
• National Council of Applied Economic Research
• In 2024, cargo transported via the NSR reached 37.9 million tonnes, a significant increase from 41,000 tonnes in 2010.
• However, this growth coincided with global temperatures surpassing the 1.5°C threshold, raising concerns about climate change.

Call to Action & Global Dialogue

• India’s 2022 Arctic Policy needs to move from theoretical planning to practical implementation.
• The upcoming Arctic Circle India Forum in May 2025 in New Delhi presents an opportunity for:
• Offering an India-centric perspective on Arctic issues.
• Catalyzing multilateral cooperation, capacity building, and stakeholder engagement.
• Potentially leading to the appointment of a ‘polar ambassador’ to oversee Arctic initiatives.

The Key Policy Dilemma

The central question for India is: “How close to the sun should we fly?”

• This involves balancing:
• Commercial opportunities in the Arctic with the need to protect a fragile ecosystem.
• Achieving this balance requires:
• Urgent policy clarity, International collaboration, and a strong focus on climate issues.

Playing with Ice and Fire

• With its extensive Arctic coastline, strong expertise in Arctic navigation, and well-trained personnel, Russia is a natural partner for India in exploring the Northern Sea Route (NSR).
• A working group on the NSR was established under the India-Russia intergovernmental commission on trade and cooperation, following Prime Minister Narendra Modi ’s meeting with President Vladimir Putin in Moscow in July 2022.
• The Chennai–Vladivostok Maritime Corridor is envisioned as a potential link to key NSR ports such as Pevek, Tiksi, and Sabetta.
• However, India faces a dilemma: if it aligns too closely with Russia, it may be perceived as indirectly supporting China’s Polar Silk Road, which is an extension of China’s Belt and Road Initiative (BRI).
• The Polar Silk Road aims to give China greater control over Arctic shipping routes and to bypass the Malacca Strait, a crucial global trade chokepoint.

Conclusion

• If India fully aligns with Western countries and partners with the U.S., it risks losing access to the vast resources currently controlled by Russia in the Arctic region.
• A more balanced approach, albeit challenging, would involve maintaining strong ties with both the U.S. and Russia.
• Additionally, India should collaborate with other countries like Japan and South Korea, which share similar concerns about the growing Russia-China partnership in the Arctic.
• Together, India, Japan, and South Korea can advocate for fair reforms in the Arctic Council, promoting a more inclusive and balanced governance structure.