Cut Import Dependence: India Must Boost Domestic Energy and Renewables
PHDCCI President Anil Gupta calls for more domestic oil exploration and renewable energy to strengthen India's economic resilience.
To safeguard its economic resilience against global uncertainties, India must aggressively accelerate its domestic oil and gas exploration, expand renewable energy generation, and push for wider electric mobility. This call for action comes from Anil Gupta, President of the PHDCCI and Chairman and Managing Director of KEI Industries Limited, who emphasized the need to reduce the nation's heavy reliance on energy imports.
The Push for Private Sector Participation
A key pillar of this strategy, according to Gupta, is the involvement of the private sector. He suggested that the government should encourage private companies to lead more exploration efforts by offering highly favorable contractual terms. By creating an attractive environment for investment, India can push for more intensive oil and gas discovery within its own borders.
Beyond fossil fuels, Gupta advocated for the maximum utilization of India's diverse energy portfolio, including:
- Solar and Wind: Scaling up renewable generation to diversify the energy mix.
- Coal: Leveraging existing domestic resources efficiently.
- Electric Mobility: Promoting the adoption of both passenger and commercial electric vehicles to slash the demand for imported oil.
Economic Resilience Amid Global Volatility
Despite global pressures, Gupta noted that India has managed oil price surges relatively effectively. While some countries saw retail fuel prices skyrocket by over 100 per cent, India's petrol and diesel prices rose by a more manageable 10-15 per cent.
He attributed India's ability to remain "immune" to various global crises to several critical factors:
- Strong Domestic Consumption: A massive internal market that sustains growth.
- China-Plus-One Strategy: A global shift in supply chains that has bolstered Indian industrial growth and exports.
- Free Trade Agreements (FTAs): New deals with the UAE, Europe, and other nations. While Gupta noted that building trust and developing markets takes time, he expects these FTAs to yield significant results within the next two to three years.
The Challenge of Critical Minerals
The conversation on self-reliance also extended to critical minerals. Gupta highlighted a stark contrast in India's current capabilities: while the country is self-reliant in aluminium, it remains almost entirely dependent on imports for copper, sourcing approximately 95 per cent of its needs from overseas.
However, there is a silver lining. Gupta expressed optimism regarding government initiatives aimed at the exploration and production of rare earth minerals, predicting that India could move toward self-sufficiency in this sector over the next two to three years.
Empowering MSMEs and Future Growth
Adding to the discussion, Ranjeet Mehta, CEO and Secretary General of PHDCCI, pointed out a significant gap in the awareness of Micro, Small, and Medium Enterprises (MSMEs). He revealed that many MSMEs are completely unaware of available government support schemes and international trade opportunities.
To bridge this gap, PHDCCI is currently running outreach programs in smaller cities and districts to educate businesses on utilizing platforms such as TReDS and GeM.
Looking ahead, the economic outlook remains bright. Anil Gupta projected that India is well-positioned to achieve a GDP growth rate exceeding 7 per cent by FY27.