‘World doesn’t want us to produce, only to be a market’: Vedanta’s Anil Agarwal says India must push back

The world doesn’t want India to produce but only wants it to be a market, said Vedanta Group Chairman, Anil Agarwal. He said India must push back against this, be more self-sufficient, produce locally and boost employment generation. 

“The world doesn’t want India to produce. It only wants India to be a market. But only domestic production creates jobs, which is proven in other parts of the world. We must push back. We must fight to be self-sufficient. After all, this is a country which used to be import dependent on food. And then became self-sufficient. It all happened because the government created a movement to make the country self-sufficient,” said Agarwal, talking about India’s energy production. 

He said it is important to secure energy independence considering the turbulent geopolitics. “India is vulnerable because we import 90 per cent of our oil and gas. We are surrounded by sea on three sides which can be blockaded in hostile times. There is no option but to raise our domestic production,” he said.

Agarwal said the demand of the world’s fastest growing market for oil and gas will only keep growing in the next 20 years. Fortunately, India has tremendous resources, entrepreneurs and talent, he said. “What we need to do is exploration. That is the core of this business,” he said, giving an example of the US that was dependent on hydrocarbon imports two decades ago. The US eventually changed its energy scene by opening up the exploration to entrepreneurs and making it lucrative. “Even backyards of homes and farms were explored. Everyone benefited,” he said.

The Vedanta Chairman said India can produce at half the cost of the imports.

“To unlock India’s full potential, we need more exploration. Today, there are hardly 20 active licences in India when there should be 2,000,” he stated, adding that the industry, however, fears processes, notices and court cases. 

“Today, the world is rapidly securing its own energy and mineral resources. India must also move quickly to make full use of what lies below the ground,”  he said, adding that production in India must grow ten times to meet future needs. 

“My vision is to see thousands of drilling rigs operating across the country. Even startups and small entrepreneurs can participate with an investment of around Rs 5 crore through leasing of rigs. What we need most is a stable and supportive environment,”  he said, adding that this is the right time to shift from heavy regulation to facilitation for exploration and production.

India is the third largest consumer of oil as of 2023. As India is expected to grow to $ 8.6 trillion by 2040, the demand for energy, especially oil and natural gas, is set to nearly double to 1,123 million tonnes of oil equivalent, said the government.