Vedanta chairman Anil Agarwal said some foreign countries do not want India to become self-reliant in oil and gas and prefer the country to remain dependent on imports.
Speaking at the India Today Conclave 2026, Agarwal said India has the resources to produce more energy domestically but policy changes and faster decision-making are needed to unlock the sector.
He said India imports a large share of key resources despite having strong geological potential and entrepreneurial capability.
FOREIGN COUNTRIES DO NOT WANT INDIA TO PRODUCE ITS OWN ENERGY
During the conversation, Agarwal suggested that global energy suppliers may not want India to expand its own oil and gas production.
“The countries in the Middle East and people outside don’t want India to make its own oil and gas,” he said. “They are installing pipelines and big tankers. They don’t want India to be self-sufficient. What will they do with their oil and gas then?”
He said this dependence on imports has become a major challenge and India must increase exploration and production within the country.
INDIA STILL RELIES HEAVILY ON IMPORTS
Agarwal pointed out that India continues to import a significant portion of its natural resources.
He said more than 90% of the country’s oil demand is met through imports and over 95% of copper is also imported. According to him, a large part of India’s import bill comes from resources that lie underground but remain unexplored.
“If a total of $800 billion is being imported, more than half of it is coming from underground resources,” he said.
He added that India’s geology is among the best in the world and the country has reserves of several key minerals including copper, bauxite, uranium and hydrocarbons.
CALL FOR FASTER MINING AND EXPLORATION PROJECTS
Agarwal said India must speed up approvals and simplify regulations to expand mining and exploration activities.
He pointed out that even after mines are auctioned, it can take several years before production actually begins.
“The mines that are allotted today or sold in auctions, it takes five years to open,” he said.
According to him, the system needs reforms so that businesses can move projects forward more quickly.
He suggested that the country should adopt a self-certification approach in certain areas so that projects do not remain stuck in regulatory processes.
GOVT SHOULD DO ITS WORK AND BUSINESSES SHOULD DO THEIRS
During the discussion, Agarwal also spoke about the role of the government and private sector in running industries.
He said government companies in sectors such as oil, gas, mining and metals have the potential to increase production many times if the system allows them to operate more efficiently.
However, he suggested that private companies have often been able to improve production and efficiency after acquiring government-owned firms.
Citing examples such as Bharat Aluminium and Hindustan Zinc, he said private management helped significantly expand production.
When asked whether the government should consider privatising more public sector companies in the energy sector, Agarwal said both the government and businesses must focus on their respective roles.
“The work of the government, the government should do it,” he said, adding that entrepreneurs should be allowed to take risks and build businesses when opportunities arise.
He also indicated that companies like Vedanta would evaluate opportunities if the government decided to divest stakes in energy companies.
PUSH FOR ENTREPRENEUR-LED ENERGY EXPLORATION
Agarwal argued that India should encourage more entrepreneurs to enter oil and gas exploration.
He suggested that smaller investors and companies should be allowed to participate in drilling projects, which could expand exploration efforts across the country.
“My dream is that every entrepreneur can install a drilling machine worth Rs 5 crore and start drilling in areas where there is potential,” he said.
According to him, such an approach could help discover new oil and gas reserves and reduce the country’s dependence on imports.
He said India has the talent, technology and entrepreneurial mindset required to expand mining and energy production.
Agarwal said India’s economic growth will depend heavily on strengthening sectors such as mining, manufacturing and energy production. Increasing domestic exploration and reducing reliance on imports, he added, would create jobs, boost investment and strengthen the country’s long-term economic security.
