Amid escalating geopolitical tensions in resource-rich West Asia, Anil Agarwal, Chairman of Vedanta Group, has urged the Indian government to declare mining of natural resources a national priority. Agarwal warned that ongoing conflicts, including the situation in Iran, expose India’s vulnerability due to its heavy dependence on imported underground natural resources.
Import Dependence Poses Economic Risks
Highlighting the scale of the challenge, Agarwal pointed out that India imports nearly 90% of its oil requirements, around 66% of LPG consumption, and about 50% of LNG demand. Oil and gas alone account for approximately $176 billion annually in the country’s import bill. He further noted that gold imports, valued at nearly $65 billion per year, add to the burden. Together, oil, gas, and gold make up nearly 30% of India’s total imports. According to Agarwal, any sharp rise in global commodity prices directly impacts macroeconomic indicators such as the current account deficit, fiscal deficit, inflation, and the value of the rupee. “The common man ultimately has to pay the price,” he stated.
Mining as a National Priority
Against this backdrop, Agarwal called for urgent reforms to accelerate domestic mining and resource extraction. He recommended declaring the sector a national priority and cutting cumbersome regulatory processes to enable rapid production growth.
He argued that easing regulations—such as eliminating time-consuming public hearings—would unlock faster project execution. While the government has already relaxed norms for critical minerals, Agarwal suggested extending similar exemptions across all minerals and processes. Additionally, he proposed granting environmental clearances on a self-certification basis, followed by post-approval audits rather than prolonged upfront approvals.
Boosting Jobs and Attracting Global Talent
Beyond economic security, Agarwal emphasised the employment potential of a revitalised mining sector. He said deregulation could create massive job opportunities, noting that young women are increasingly entering the sector. He also suggested that policy reforms could encourage skilled Indian professionals working abroad to return home, strengthening domestic expertise in resource extraction and processing.
Divestment and Asset Optimisation
Agarwal further recommended maximising the utilisation of existing mining assets, many of which are government-owned. He proposed divesting at least 50% stakes in such assets to “proven people”. According to him, divestment could also enable employees to gain shareholding, thereby improving efficiency, accountability, and performance.
Self-Reliance as a Strategic Imperative
Agarwal stressed that India must act decisively in an increasingly uncertain global environment. “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. Self-reliance is more than a desirable aspiration. It is an immediate economic and strategic imperative,” he mentioned. As reported by thehindubusinessline.com, as geopolitical risks intensify, his call underscores the growing debate around domestic resource security, mining reforms, and India’s push toward greater economic self-reliance.
