How Has Modi Made India “Atmanirbhar”?

Modi is the greatest visionary PM in the history of India, for some the world, and hence they do not hesitate to call him “Vishwa Guru”. Since 2014, Modi has been making great efforts to make India “Atmanirbhar” or self-reliant. Modi does not coin empty slogans but backs his words with deeds, or actions on ground. I am sure that the reader would have heard of the great masterstrokes like “Make in India”, “Start-up India”, “Vocal for Local”, the great PLI policy and numerous other masterstrokes. Let us examine some important materials to assess as to how “Atmanirbhar” Vishwa Guru Bharat has become.

Energy

• Oil. India relies on imports for nearly 88% of its crude oil requirements. This dependence has even increased from 83.5% in 2014-15 to 89% in 2023-24, despite the masterstroke of ethanol blending.
• Coal. While India is a major coal producer, a portion of its coal needs (nearly 26% in FY24) are met through imports, though this has slightly decreased from a peak of 31% in 2019-20.
• Gas. India also imports a substantial portion of its natural gas, with dependency rising from 33.5% in 2013-14 to 43.3% in 2022-23.

Edible Oil

India is a major importer of edible oils, meeting approximately 57% of its domestic needs through imports. Palm oil constitutes the largest share of these imports, with around 60% coming from countries like Indonesia and Malaysia. In the year 2022-23, India imported 164.7 lac tonnes of edible oil, valued at ₹1.38 lac crore, a slight decrease from the ₹1.57 lac crore in the previous year.

Electronic Goods

In the 2024-25 fiscal year, India’s import bill for electronic goods was $102.6 billion or approximately Rs 9 lac crores.

While India’s electronic goods exports reached $40.9 billion, the substantial import figure of $102.6 billion indicates a considerable reliance on foreign markets for electronic components and finished products.

The import bill for electronic goods has consistently stayed above $20 billion per quarter, with electronic components and computer hardware making up over half of these imports. This underscores the ongoing dependence on importing high-value components, despite efforts to boost domestic manufacturing.

Fertilizers

Urea

• India’s annual urea requirement is about 360 lac metric tonnes, while domestic production in 2014 was around 225 lakh metric tonnes, leading to imports filling the gap.
• India continues to import about 30% of its urea to meet demand, despite increased domestic production.
• The domestic fertilizer industry’s dependence on natural gas as a feedstock for nitrogenous fertilizers is limited by the resource’s availability, hindering self-sufficiency.

Dependence on imported raw materials

• India’s limited domestic natural gas reserves, the primary component for urea manufacturing, result in import dependency.
• The cost of natural gas constitutes around 80% of urea production costs in India, making the country susceptible to international price fluctuations.

DAP

· Demand-Supply Gap:

India’s agricultural sector is a major consumer of DAP, and the country’s domestic production capacity is insufficient to meet this demand.

· Raw Material Dependence:

Indian DAP manufacturers rely on imported raw materials, making the country susceptible to global price fluctuations and supply disruptions.

• Diversification of Supply:

In recent years, India has been actively seeking to diversify its DAP import sources beyond China, forging agreements with countries like Saudi Arabia and Morocco to reduce its dependence on a single supplier.

• Global Supply Chain Issues:

Disruptions in global shipping routes and trade restrictions can impact DAP availability and prices in India, necessitating proactive measures like long-term agreements with fertilizer-producing nations.

Silicon

• Limited Domestic Production:

Until recently, India lacked the infrastructure and technology for large-scale silicon production, especially for specialized forms like monocrystalline silicon wafers.

• High Demand Across Industries:

Silicon and silicon-based products are crucial for various sectors, including electronics, solar energy, construction, and automotive industries. This widespread demand necessitates significant imports.

• Monocrystalline Silicon Wafers:

India’s expansion in solar cell and module manufacturing, along with its emerging chip-making ambitions, relies heavily on monocrystalline silicon wafers. These are often imported, especially from China, due to cost and technological advantages.

• Global Supply Chains:

The global semiconductor shortage during the pandemic highlighted the fragility of supply chains and the need for diversification. India is actively working to build its own semiconductor ecosystem, which will further increase the demand for silicon and related materials.

• Specific Example:

India’s imports of monocrystalline silicon wafers from China have surged, driven by the growth of its solar energy sector and the need for materials to meet both domestic and export demands.

• Future Trends:

India’s semiconductor market is projected to grow significantly, with projections reaching $100 billion by 2025, further increasing the demand for imported silicon and related components.

Lithium

Limited Domestic Production:

• India’s lithium reserves are relatively new discoveries and are not yet at a scale to meet the country’s current and future needs.
• Even with the recent discoveries in Jammu & Kashmir, further exploration, technological advancements, and infrastructure development are needed to establish viable domestic Lithium production.
• India’s mining industry lacks the expertise and technology to extract lithium efficiently from the types of deposits found in India, which are often clay-based and mixed with other minerals.
• There are also environmental and logistical challenges associated with extracting Lithium from the Himalayan region.

Growing Demand for Lithium-ion Batteries:

• India is actively promoting electric vehicles (EVs) and renewable energy sources, both of which heavily rely on lithium-ion batteries.
• The demand for these batteries is projected to increase significantly in the coming years as India transitions to a greener economy.
• Lithium is a crucial component in these batteries, and the lack of domestic supply forces India to import it.

Strategic Importance of Lithium:

• Lithium is considered a strategic mineral due to its role in the energy transition and national security.
• Import dependency can create vulnerabilities in supply chains and make India susceptible to geopolitical risks and price fluctuations.
• To mitigate these risks, India is actively working to diversify its sources of lithium and develop its own domestic production capabilities.

Pharmaceutical Industry

In the fiscal year 2024-25, India’s pharmaceutical imports were estimated at $4.65 billion. This represents a 1.8% increase in value compared to the previous fiscal year. The quantity of imports also saw a 9.3% increase, reaching 493,971.5 million tonnes. In Indian rupees, the import value was over Rs 39,000 crores.

Cobalt

India’s cobalt needs

• Key driver: Energy transition and EV batteries: The rising demand for Electric Vehicles (EVs) and the broader shift towards renewable energy sources are significantly driving India’s cobalt needs.
• Industrial applications: Cobalt is also crucial for various other industrial applications, including superalloys used in aerospace and defence, as a catalyst in petroleum and chemical industries, and in various other specialized applications where substitutes are difficult to find.
• Strategic importance: Cobalt is considered a critical mineral for national security, particularly for defence applications like hypersonic cruise missiles, radar systems, and battlefield communication tools.

India’s cobalt imports

• Heavy Reliance: India relies heavily on imports to meet its cobalt requirements, as there is currently no production from primary cobalt resources in the country.
• Increasing Imports: India’s cobalt imports are projected to increase steadily in the coming years, driven by the expanding EV market and other industrial demands.
• Key Import Sources: In 2023, India primarily imported cobalt from China, the United Kingdom, and the United States.
• Government Initiatives: To address the import dependence and secure critical mineral supply chains, India is actively pursuing a multi-pronged approach.

Uranium

• India has set a target of achieving 100 GW of nuclear power capacity by 2047.
• Reaching this capacity will demand approximately 18,000 tons of uranium annually, representing nearly one-third of global uranium production.
• India’s domestic uranium reserves are limited and currently inadequate to meet this growing demand.
• The country’s indigenous Pressurized Heavy Water Reactors (PHWRs) primarily use natural uranium, which requires a constant supply.
• Further expansion plans include indigenous Fast Breeder Reactors and potentially Small Modular Reactors, which may also require uranium or other nuclear fuels.

Uranium Imports

• India has historically relied on imports to supplement its domestic uranium supply, particularly after receiving waivers allowing international nuclear trade.
• Key international suppliers include Russia, Kazakhstan, Uzbekistan, Canada, and France.
• India’s imports primarily consist of natural uranium ore concentrate (UOC), commonly known as yellowcake.
• This concentrate is then converted into uranium dioxide and fabricated into fuel bundles domestically.
• For the period 2025 to 2033, India plans to import at least 9,000 metric tonne of uranium to power its new and upcoming reactors under the National Nuclear Energy Mission.

Challenges

• Securing a stable and predictable supply of uranium is a significant challenge due to geopolitical factors and fluctuating global uranium prices.
• While some quality uranium reserves have been discovered domestically, particularly in Andhra Pradesh and Telangana, the overall low-grade nature of indigenous ores makes extraction expensive and environmentally challenging.

In essence, while thorium holds long-term promise, uranium is currently the more practical and readily available option for India’s nuclear energy program, particularly in the initial stages of development. India’s long-term strategy, however, is to transition towards thorium utilization as the technology matures and becomes more economically viable.

Rare Earth Metals

• Limited Processing and Refining Capacity:

India has vast reserves of rare earth minerals, but lacks the infrastructure and technology for large-scale separation, purification, and value-added production, such as rare earth magnets.

• Dependence on Imports:

This lack of domestic processing capabilities leads to a reliance on importing finished products and raw materials, especially from China, which dominates the global rare earth market.

• Strategic Importance of Rare Earths:

Rare earth elements are critical components in various high-tech and strategic sectors, including electric vehicles, renewable energy, defence technologies, and electronics.

• Supply Chain Vulnerability:

Dependence on a single source (like China) for these crucial materials creates significant supply chain vulnerabilities and geopolitical risks, especially when considering potential trade disruptions or export restrictions.

• Government Initiatives:

Recognizing these challenges, the Indian government has been actively working on policy reforms and incentives to encourage domestic mining, processing, and magnet production to reduce import dependence.

Comments

After analyzing the above information, I am sure that the reader would have realized the great success of all the masterstrokes of Vishwa Guru Modi in making India “Atmanirbhar”. The reader would surely have realized that if he/she votes Modi to power again in 2029 then India would become the BIGGEST EXPORT HUB IN THE WORLD LEAVING BEHIND SUPER POWERS CHINA AND US, JUST LIKE AMITABH HAD LEFT “ANGREZ BEHIND” in “Namak Halaal.”

–BY COL M M NEHRU