US-Iran war: As geopolitical tensions escalate in resource-rich regions like Iran, Vedanta Chairman Anil Agarwal has issued a sharp warning: India’s heavy dependence on imported natural resources leaves it dangerously exposed to global shocks.
In a post on With oil, gas and gold forming a significant share of the country’s import bill, he stressed that urgent action is needed to boost domestic production and reduce reliance on foreign supplies.
“A major geopolitical shock in a resource-rich region, like the ongoing conflict in Iran, makes India vulnerable because of its huge import dependence in natural resources from below the ground.”
According to Agarwal, the solution lies in declaring the natural resources sector a national priority and rapidly accelerating domestic exploration and production.
A $176 Billion Import Bill: The Hidden Risk
India currently imports around 90% of its oil requirements, which power the country’s transport system. Around 66% of LPG — used in homes for cooking — is imported, along with 50% of LNG that fuels low-emission public transport vehicles, informed Agarwal.
He further highlighted that oil and gas together account for approximately $176 billion annually — the largest components of India’s import bill. He warned that any sharp rise in global prices directly impacts macroeconomic indicators such as the current account deficit, the value of the rupee, fiscal deficit and inflation, ultimately affecting the common citizen.
“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. So is 50% of LNG, which goes into low emission public transport vehicles.”
He also pointed out that gold, India’s second-largest import at around $65 billion annually, tends to see rising demand and prices during periods of uncertainty. Combined, oil, gas and gold account for nearly 30% of total imports — a concentration that he believes heightens economic vulnerability during global crises.
Cut Red Tape, Boost Domestic Production
Agarwal called for sweeping reforms to fast-track domestic resource development. He urged the government to exempt the sector from lengthy regulatory processes, including public hearings, and extend the streamlined approach already applied to critical minerals across the board.
“Government should exempt the sector from time-consuming regulations, including public hearing. The latter has already been done for critical minerals but needs to be done across the board for all processes and minerals.”
He suggested that environmental clearances could move to a self-certification model, with audits conducted later rather than approvals delaying projects upfront. Once companies commit to the government’s rulebook, he believes further procedural hurdles should be minimized.
In addition, Agarwal proposed that existing government-owned assets should be fully utilized, with at least 50% stake divested to proven operators. He emphasized that employees should receive shareholding and assurances of no retrenchment.
Beyond economic security, Agarwal also sees significant employment potential in the sector. He noted that young women are increasingly entering the field and suggested that skilled Indians working abroad could be encouraged to return under a “ghar vapsi” approach.
“India cannot wait. The world is more unsettled and uncertain than it has been at anytime 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.”
According to Agarwal, the present global uncertainty demands decisive action rather than incremental change. He believes India has a progressive government capable of implementing bold reforms and that some calculated risk is necessary to unlock long-term returns.
At its core, his message is clear: in an increasingly fragmented world, economic self-reliance is not just about growth — it is about resilience.
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