- Vedanta's Agarwal urges boosting India's domestic oil, gas, and mineral production for energy security
- India imports nearly 90% of its oil and gas, posing risks amid geopolitical tensions
- Agarwal estimates India's untapped energy reserves at 300 billion barrels of oil equivalent
Vedanta Ltd.'s Chairman Anil Agarwal said India must scale up domestic oil, gas and mineral production to secure energy independence, warning that regulation and legal uncertainty are discouraging investment and slowing exploration.
In a post on X, the chairman said India imports about 90% of its oil and gas, leaving the country vulnerable during hostile geopolitical conditions. “There is no option but to raise our domestic production,” he said, adding that demand would keep rising for at least the next 20 years.
In today's turbulent geopolitics, it is critically important for every large nation to secure energy independence. India is vulnerable because we import 90% 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…
— Anil Agarwal (@AnilAgarwal_Ved) February 9, 2026
Agarwal said India has substantial untapped resources, estimating reserves at around 300 billion barrels of oil equivalent. He said the country could produce energy “at half the cost of imports” and argued that domestic output is essential for job creation and economic growth.
He said Vedanta aims to increase its own production five times, while India as a whole needs to grow production ten times to meet future needs. “Only domestic production creates jobs,” he said. “We must push back and fight to be self-sufficient.”
Regulation Concerns
Agarwal said the sector suffers from a lack of policy support and faces high regulatory risk. He said India has only about 200 active exploration licences, compared with what he said should be around 2,000.
“The industry and potential investors fear processes, notices, court cases and taking away the licences,” he said, adding that even a single case in the public domain can deter investors for years. He called for a shift “from heavy regulation to facilitation” to encourage exploration and production.
Production Targets
Agarwal said India's past success in achieving food self-sufficiency showed how policy support can change outcomes. He said the government has been encouraging growth, collaboration and investment, but more needs to be done to unlock domestic resources.
He said thousands of drilling rigs could operate across the country, with startups and small entrepreneurs participating through leasing models that require investment of about Rs 5 crore. A stable and supportive environment, he said, would allow India to move towards energy independence and meet its long-term demand.
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