Industry Odisha Bureau, Oct 04: India and China are better placed for Hormuz disruptions, says George Yeo. He credits diversified sourcing and stockpiles. He expects Russian oil purchases to continue. He also urges pragmatic China ties and technological self-reliance.
India’s economic choices increasingly involve balancing competing external pulls. Energy, trade and technology each carry their own dependencies. Each also brings pressure from a different direction. Former Singapore Foreign Minister George Yeo offers one way through. His advice: engage many partners, but let none dominate. He spoke on the sidelines of the 5th Kautilya Economic Conclave.
Hormuz tests energy resilience
Yeo began with energy security. He said India and China are relatively better placed for Strait of Hormuz disruptions. He credited diversified sourcing and stockpiles for that resilience. Better placed, however, does not mean unaffected. Yeo also drew a contrast between the two Asian economies. He described China as relatively relaxed. India, he said, remains “still anxious”. Such concern makes energy diversification a priority, not a preference.
Russian oil stays in the mix
Yeo expects India to keep buying part of its oil from Russia. He made that assessment despite potential US tariff pressure. The underlying logic is diversification, not reliance on one supplier. Russian crude is one element in a wider energy calculation. His remarks did not address future purchase volumes.
Managing Washington
The same reasoning shaped Yeo’s view of the United States. He said India must actively manage its relationship with Washington. The key, he argued, is protecting India’s negotiating position. He warned that yielding to pressure would only weaken India’s hand. India, in his view, should seek a more equal footing. His framing suggests partnership without excessive dependence, not confrontation.
China through an economic lens
On China, Yeo urged a “hard-headed” approach free of emotion. He said Chinese inputs can make India more competitive in certain areas. Yet he framed such engagement as a means, not an end. Bringing in Chinese partners should help India learn and benefit. If both sides pursue mutual benefit, he said, ties could improve. His case rests on economic pragmatism, not geopolitical alignment.
AI becomes the real test
Artificial intelligence is where Yeo’s argument is sharpest. He said the United States and China are far ahead. India, he argued, should not lean heavily on either. He suggested using open-source technology from China to build Indian systems. That advice comes with conditions. India must keep its own application layer. It must also keep its data secure. Relying only on American systems, Yeo warned, could leave India disadvantaged.
The distinction matters. Using foreign technology is different from depending on it. Under Yeo’s approach, open-source tools speed development while India retains control. The final goal, he said, is to “develop your own capabilities”.
A steady Singapore link
Yeo described India-Singapore relations as strong. Both countries, he said, should seek more ways to deepen ties. He added that Singapore’s strategic geography should keep its trade-hub status intact.
Diversification as leverage
Yeo’s remarks connect challenges often treated separately. Hormuz risk, Russian oil, Washington, China and AI share one thread. Each involves managing dependence rather than shunning outside partners. Diversification creates bargaining power. Bargaining power allows selective engagement. Selective engagement, in turn, can support domestic capability building. Together, that amounts to a form of strategic autonomy. It remains Yeo’s prescription, not declared Indian policy. His message is clear: use outside help, but strengthen India’s own base.
