Context:

• With India aspires to become a Viksit Bharat by 2047, a key milestone in this journey is achieving Atmanirbhar Bharat (self-reliance), especially in the natural resources sector, which currently forms 50% of India’s imports.
• Despite having geological resources, India remains heavily import-dependent on oil, copper, gold, coal and bauxite.

India’s Import Dependence:

• Oil, gold and copper:
  • These together constitute 60% of India’s total resource imports.
  • India imports around 90% of its oil requirement, 95% of copper requirement and over 99% of gold requirement.
• Coal and bauxite: India also imports coal and bauxite, where imports should be zero as significant domestic reserves exist.
• Electronics: 15% of total imports, but domestic production has seen success due to policy push.

 Potential of Natural Resources in India:

• Geological history places India in a resource-rich category, comparable to Australia, Africa and South America.
• However, vast mineral and hydrocarbon deposits remain underexplored.
• With effective policies, India can minimize imports and leverage natural resources for economic transformation.

Policy Measures for Self-Reliance:

• New approach to exploration:
  • Encourage small exploration start-ups, not just large PSUs.
  • Move away from auction-heavy systems that discourage small exploration companies. This will free up exploration to unleash entrepreneurial potential.
  • The government will, in any case, charge royalties and taxes, which will take care of its revenue requirements.
• Expedited processes via self-certification:
  • The government can create a rulebook of norms and standards that must be adhered to.
  • Entrepreneurs must self-certify, and the government can hold them accountable (via an audit at a later stage) for any lapse.
  • In fact, the government already uses this system effectively in some domains, like income tax.
  • This will reduce long delays in clearance approvals, reducing time taken to move from exploration to mining.
• Rejuvenation of existing assets:
  • Dormant mines (e.g., Kolar Gold Fields) and underperforming assets (e.g., Hindustan Copper, Hutti Gold Mines) need revival.
  • This can be achieved by allowing private sector participation and infusion of technology.
  • Immediate results can be achieved here, unlike new exploration which is time-intensive.
• Level playing field for private sector:
  • Current dominance and preferential treatment of PSUs creates barriers.
  • Equal opportunities for private players will attract fresh investment.
  • Encouragement of entrepreneurship in natural resources can accelerate job creation and production.

Benefits of the Suggested Measures:

• Reduced import dependence: On strategic resources.
• Strengthened livelihood opportunities: In resource-rich regions.
• Enhanced government revenue: Without extra budgetary support.
• Ensure policy neutrality: Between public and private sector players, encouraging exploration start-ups and private sector involvement. This will result in -
  • Job creation in mining, refining, and associated industries.
  • Alignment with transparency and ease of doing business goals.
• Integrate natural resources strategy: Into India’s roadmap for energy security, industrial growth, and Viksit Bharat 2047.

Conclusion:

• India cannot achieve true self-reliance or become a developed nation by 2047 while remaining dependent on natural resource imports.
• With proactive reforms, India can unlock its geological wealth.
• Strengthening the natural resources sector is not just about reducing imports—it is about ensuring strategic autonomy and sustainable economic growth on the path to Atmanirbhar and Viksit Bharat.