Mentor’s Comment:  Global trade is shifting due to U.S. pressures and climate change, prompting countries to explore new supply chains and routes. The Arctic, while warning of a climate crisis, offers major geopolitical and economic potential. As new trade paths open, India must ensure it has a role in future Arctic opportunities without harming the fragile environment.

Today’s editorial highlights why the Arctic region matters for the world and India. This topic is useful for GS Paper 2 (international relations) and GS Paper 3 (environment and economy) in the mains exam.

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Let’s learn!

Why in the News?

India should have a voice in the future economic opportunities of the Arctic, without rushing to exploit its resources recklessly.

How could it transform global trade?

• Reduced Freight Costs: By providing a more direct and shorter route, the NSR can substantially lower shipping costs, as vessels spend less time on the water and consume less fuel. Eg: The cost savings from the reduced travel time and fuel consumption can incentivize global shipping companies to shift their operations to the NSR, especially for bulk goods and high-value cargo.
• Expedited Global Trade: The NSR could drastically speed up the flow of goods, particularly for time-sensitive cargo like electronics, automotive parts, and perishable goods, thus improving global trade efficiency. Eg: In 2018, a Chinese cargo ship made a successful voyage through the NSR, delivering goods from China to Europe in a record time of 18 days, compared to the traditional 40+ days via the Suez Canal.
• Opening New Markets: The NSR could lead to the development of new ports and shipping routes in the Arctic, creating economic opportunities for the countries surrounding the region. It can also open up access to new markets that were previously difficult to reach. Eg: As traffic on the NSR increases, ports like Murmansk in Russia and Pevek in the Arctic will see growth, transforming them into significant maritime hubs.

Why is the Arctic region becoming geopolitically and economically important for India?

• New Trade Routes: The Northern Sea Route (NSR) opens shorter, more efficient shipping lanes between Europe and Asia, benefiting India’s trade by reducing shipping times and costs. Eg: The NSR offers India quicker access to European markets, enhancing trade competitiveness.
• Energy Resources: The Arctic region holds vast untapped oil and natural gas reserves, offering India potential access to energy resources vital for its growing needs. Eg: Arctic exploration could help diversify India’s energy sources, ensuring a more secure supply.
• Climate Research: The Arctic’s rapid changes influence global climate patterns, impacting India’s monsoon and agricultural productivity. Eg: Research on the Arctic’s climate helps India prepare for shifts in its monsoon patterns and protect food security.
• Geopolitical Influence: India’s involvement in Arctic governance could strengthen its global position and foster partnerships with key nations like Russia and the U.S. Eg: By engaging in Arctic policy, India enhances its diplomatic and strategic ties with major global players.
• Maritime Security: India’s access to the Arctic region can improve its maritime security and help protect vital trade routes. Eg: Strengthening Arctic partnerships can ensure India’s strategic interests in the region are safeguarded.

When did India formalise its Arctic policy, and what are its key goals?

Who are India’s potential strategic partners in the Arctic region?

• Russia: India sees Russia as a key partner in the Arctic due to its extensive Arctic coastline and expertise in Arctic navigation. The two countries have established a working group under the bilateral intergovernmental commission to explore opportunities in Arctic trade routes like the Northern Sea Route (NSR) and potential joint ventures. Eg, the Chennai-Vladivostok Maritime Corridor is seen as a bridge to the NSR.
• Japan and South Korea: Japan and South Korea are also critical partners due to shared concerns over China’s increasing influence in the Arctic. These nations and India aim to promote a more inclusive Arctic Council and ensure equitable access to Arctic resources, countering Chinese dominance in the region.

What are the challenges involved? 

• Harsh Environmental Conditions: The Arctic’s extreme weather and icy waters present significant challenges for navigation and shipping. India will need to invest heavily in specialised ice-breaking fleets and infrastructure to ensure safe and efficient passage along the Northern Sea Route (NSR). Eg, the need for shipbuilding suited to Arctic conditions was highlighted in India’s 2025-26 Budget.
• Geopolitical Tensions: The Arctic region is becoming a battleground for global powers, with competing interests between the U.S., Russia, and China. India faces the dilemma of balancing relations with both Russia and the Western bloc while ensuring its interests in Arctic trade routes and resources. Eg, supporting Russia’s Arctic ambitions could align India with China’s Polar Silk Road, creating a potential conflict with U.S. interests.
• Environmental Impact and Climate Change: Exploiting Arctic resources poses risks to the fragile ecosystem, and climate change further exacerbates these concerns. India must balance its commercial interests with environmental responsibility, ensuring that Arctic exploration does not contribute to further ecological degradation. Eg, global temperatures breaching 1.5°C in 2024 highlight the urgency of sustainable development in the Arctic.

How should India balance environmental concerns with commercial interests in the Arctic? (Way forward) 

• Sustainable Resource Management: India should advocate for responsible exploration and use of Arctic resources, ensuring that commercial activities do not harm the fragile environment. This includes supporting international regulations on sustainable practices and climate-resilient policies. Eg, India’s engagement in the Arctic Council can help influence global guidelines for Arctic resource extraction, focusing on minimal environmental disruption.
• Collaborative Efforts with Like-minded Nations: India should collaborate with countries that share its concerns about environmental protection, such as Japan and South Korea, to promote sustainable Arctic governance. By forging partnerships focused on environmental preservation and responsible trade, India can secure both economic opportunities and environmental integrity. Eg, India, Japan, and South Korea have common interests in mitigating Chinese influence in Arctic policies, emphasising eco-friendly development.

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