China’s BRI, External Energy Quest and India-China Cooperation and Competition

Abstract

Since the energy production capacity of India and China has been paced out by the consumption, the energy deficiency is bound to increase in the future. Though both the countries have initiated their own domestic, peripheral and external energy strategy, it is pertinent that they cooperate in the international energy markets so as to curb the crude oil prices, bring down the prices of the bids, transportation, and share their experience and technologies to overcome their dependence on developed countries. Furthermore, building a sizable oil reserves would be too expensive for both; it would be sensible to consider co-financing an oil reserve system for mitigating the risks in the international energy market. Also, since some of the institutions such as Asian Infrastructure Investment Bank promote north–south financial cooperation under the BRI, it would make sense if India makes use of such institutions. However, in order to realize an integrated energy market in Asia, a slew of intergovernmental agreement, including the currency swaps, liberalized investment is necessary for the transactions between suppliers and buyers.