Anil Agarwal urges expansion of mining assets to reduce imports
Anil Agarwal, the Indian industrialist often referred to as the "metal king," has raised concerns about the growing gap between consumption and domestic production in several crucial sectors. Over the past three years, he noted that copper consumption has seen a growth of 22%, while copper concentrate production only increased by 4%. A similar trend was observed in aluminium, where consumption rose by 13% but raw material bauxite only grew at 6%.
Agarwal highlights import reliance due to production-consumption gap
Agarwal, in a post on X, also highlighted the imbalance in ferroalloys and steel sectors, where demand has outstripped domestic production of raw materials. He warned that this discrepancy is leading to a steady rise in India's mineral and metal imports. "Already 50% of our annual import bill, around $380 million out of $760 million, is on account of natural resources," he stated.
Agarwal calls for private sector involvement in mineral exploration
As India's economy is projected to grow rapidly, the demand for metals and oil is expected to accelerate further, potentially exacerbating the import situation. To address this issue, Agarwal has called for increased private sector involvement in mineral exploration and streamlined clearance processes. He suggested that "We should look at brownfield expansion of assets like Hindustan Copper, Bharat Gold Mine, and Hutti Gold Mines with private sector participation."
Leveraging India's geological potential could reduce imports
Agarwal believes that leveraging India's substantial geological potential could reduce imports and create numerous job opportunities, particularly for less-skilled workers. This approach, he suggests, could potentially "eradicate poverty." He concluded by drawing parallels with other developed nations, stating that "Every country that has advanced has made optimal use of below-the-ground resources. We should also."
