India sitting on 300 billion barrels? Here's why Anil Agarwal wants a drilling push amid 90% import reliance

Vedanta chairman says India can produce oil at half the cost of imports and calls for more licences and a stable regulatory environment.

• Anil Agarwal urges major boost in India's oil and gas exploration
• India imports 90 percent of its oil and gas needs
• Agarwal calls for regulatory reforms to aid domestic production

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Vedanta Resources Limited chairman Anil Agarwal on Tuesday called for a significant expansion of domestic oil and gas exploration, saying India remains vulnerable because it imports 90 percent of its oil and gas requirements.

In a post on social media platform X, Agarwal said energy independence is 'critically important for every large nation' amid turbulent geopolitics. “India is vulnerable because we import 90 percent 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 to raise our domestic production,” he wrote.

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

He said India is the world’s fastest growing market for oil and gas and that demand would continue to grow for at least two decades.

“Fortunately, we are blessed with tremendous resources, 300 billion barrels equivalent. More than 30 times Guyana’s potential,” he said.

Agarwal added that India has technical expertise in the sector. “Across the world, in America, Middle East and Europe, 10 percent of experts in this industry are Indians. So, we have talent. What we need to do is exploration. That is the core of this business,” he said.

Referring to the United States’ shale expansion, he said the US had reduced its dependence on hydrocarbon imports by opening up exploration to entrepreneurs and making it commercially viable. “Even backyards of homes and farms were explored. Everyone benefited,” he wrote.

Cost, contribution and licences

Agarwal said domestic production could be achieved at 'half the cost of imports'. He added that the group has contributed $40 billion to the exchequer and that Cairn, part of Vedanta’s oil and gas business, has produced 1.3 billion barrels over the years.

“This sector is among a few that has no government protection or incentive like PLI,” he said, referring to the production-linked incentive schemes extended to several manufacturing sectors.

He said there are “hardly 200 active licences in India when there should be 2,000,” and that potential investors fear regulatory processes, notices, court cases and licence cancellations. “Even one court case or notice in the public domain catches like fire in the world,” he wrote.

Drawing an analogy, he referred to the Ghana bird sanctuary in Bharatpur, saying investor sentiment can change quickly if the operating environment is seen as uncertain.

Call for regulatory shift

Agarwal said India must move from “heavy regulation to facilitation for exploration and production” and provide a stable and supportive environment. He said small entrepreneurs and startups could participate in drilling with investments of around Rs 5 crore through leasing of rigs.

“My vision is to see thousands of drilling rigs operating across the country,” he wrote. He added that Vedanta aims to increase its production fivefold and that India’s overall production must grow tenfold to meet future demand and support economic growth.

He also said that 'the world doesn’t want India to produce' and instead sees it as a market, arguing that domestic production generates jobs. “We must push back. We must fight to be self-sufficient,” he wrote, citing India’s transition from food import dependence to self-sufficiency as an example.

India is one of the largest consumers of crude oil globally and relies on imports for the bulk of its hydrocarbon needs. Successive governments have sought to increase domestic production through exploration and licensing reforms, while also diversifying import sources.

The government has in recent years introduced policy measures aimed at encouraging upstream investment, including changes in exploration licensing frameworks and revenue-sharing mechanisms. The hydrocarbon sector, however, has faced challenges including pricing disputes, arbitration cases and regulatory scrutiny.

Vedanta, through its oil and gas operations, including Cairn, is among the largest private sector contributors to India’s domestic hydrocarbon output. Agarwal said the company’s goal is to increase its own production five times as part of a broader push for energy self-sufficiency.