‘50% of our imports for materials below the ground’: Anil Agarwal on the potential of India’s rich geology

Chairman of Vedanta Group, Anil Agarwal, said that geology as a sector has the biggest potential to create jobs. He said the government must allow both public and private sectors to enhance production. 

“Which is the one sector that can create massive jobs, generate revenue for exchequer, cut imports, support the rupee and contribute to rapid GDP growth? It is below the ground. India has a very rich geology and yet 50% of our total imports are on account of materials from below the ground, like oil, gold, diamonds, copper and other resources. Large imports add pressure on the rupee,” he said on a social media post on X.

Agarwal said that the one thing that can change the trajectory of this sector is trust. Brownfield and greenfield expansion of this sector has been prevented due to layers of clearances that are required. The Vedanta chief said that this sector, along with construction, has the biggest potential to create jobs. 

Allowing both public and private sector companies to enhance production will help this sector, he said. 

“Rules and regulations should be there to enhance prosperity, not slow it down. Lay down norms. Move to self-certification followed by audit like in income tax. People will follow the norms. These may seem like small changes but they can make a big difference,” he said. 

Finance Minister Nirmala Sitharaman, in the Budget 2025, announced a policy for recovery of critical minerals from tailings to be brought out as part of mining sector reforms. She had proposed the reforms, including those for minor minerals, through sharing of best practices and institution of a State Mining Index.

The finance minister also announced that cobalt powder and waste, the scrap of lithium-ion battery, lead, zinc and 12 more critical minerals are fully exempted from basic customs duty.