Warning that escalating geopolitical tensions in resource-rich regions such as
Iran expose India’s structural vulnerabilities, Vedanta Chairman Anil Agarwal
has called for an immediate and sweeping overhaul of India’s natural resources
policy framework, urging the government to declare the sector a national
priority.
In his social media post, Agarwal
underscored India’s heavy reliance on imported hydrocarbons and precious
metals, cautioning that global instability directly threatens macroeconomic
stability and the common citizen’s pocket.
“Today, 90% of our oil is imported. This
fuels our transport. 66% of our LPG is imported. We use it in our homes to
cook. Around 50% of LNG is also imported,” he noted. Oil and gas alone account
for nearly $176 billion annually in imports, making them the largest components
of India’s import bill. Gold imports, at approximately $65 billion annually,
rank second—often rising sharply during periods of global uncertainty.
Together, oil, gas and gold constitute
nearly 30% of India’s total imports, leaving the economy exposed to price
shocks that can widen the current account deficit, weaken the rupee, strain
fiscal balances and fuel inflation.
Agarwal advocated bold structural reforms
to unlock domestic production. He proposed exempting the natural resources
sector from what he described as “time-consuming regulations,” including public
hearings. While such relaxations have been introduced for critical minerals, he
argued they must be extended across all minerals and processes.
He further suggested that environmental
clearances should move to a self-certification model. “Once a company commits
to the Government’s rulebook, there should be no further process—only audit at
a later stage,” he said, emphasizing speed and accountability over procedural
delays.
Highlighting underutilized
government-owned assets, Agarwal proposed divesting up to 50% stake in such
resources to proven private players to drive efficiency and output. He
recommended employee shareholding and assured that no retrenchment should
accompany such reforms, framing the approach as both economically and socially
responsible.
Beyond macroeconomic gains, Agarwal
projected significant employment generation from a revitalized mining and
energy sector. He noted increasing participation of young women in the industry
and called for encouraging skilled Indian professionals abroad to return
home—positioning the sector as a catalyst for “ghar vapsi” of global talent.
With global alliances shifting and
geopolitical fault lines deepening, Agarwal stressed that self-reliance in
natural resources is no longer aspirational but essential.
“The world is more unsettled and
uncertain than it has been at any time in my memory. There are no permanent
friends or partners in today’s geopolitics,” he said. “Self-reliance is more
than a desirable aspiration. It is an immediate economic and strategic
imperative.”
His remarks come at a time when supply
chain disruptions, energy price volatility and geopolitical conflicts are
reshaping global trade dynamics, adding urgency to India’s long-standing push
for resource security and industrial resilience.