India Aims to Boost Resilience After West Asia War Disruptions

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Aims To Reduce Vulnerabilities After Shocks Like W Asia War

Representative image

Aims To Reduce Vulnerabilities After Shocks Like W Asia War

Representative image

NEW DELHI: Wiser from the experience of disruptions caused by the war in West Asia, govt departments have started work on a series of measures to increase domestic resilience and reduce vulnerabilities caused by shocks, whose frequency has increased in recent years. From identifying 100-150 items for import substitution, to boosting the production of active pharamceutical ingredients and checking the entry of cheap shipments, ministries have initiated discussions and drawn up specific steps. Energy is on top of the heap, with measures to increase the green hydrogen footprint, bolster solar and green energy, especially storage capacity being taken up on a war footing. The road map worked out at the PMO's behest is being implemented through ministries, with regular monitoring by top officials from Seva Teerth, officials told TOI. The plan itself was worked out over eight to 10 weeks and came along with immediate steps to ensure that the economy is not hit by shortages, be it energy or other inputs and raw materials that come from West Asia. In parallel, steps that address structural vulnerabilities in the medium- to long-term have been initiated, a high-ranking official said. Some of the measures taken since the war broke out on Feb 28 are likely to continue, including diversified sourcing. For instance, there will be lower reliance on imported LPG and greater penetration of piped natural gas is being prioritised. While a coal gasification initiative has been approved by the Union cabinet, govt intends to channelise some of this gas to fertiliser plants to reduce imports. A senior official said six-seven projects are going to be pushed aggressively in addition to ones under implementation. The petroleum ministry is also expected to announce measures as part of a plan to step up focus on exploration of oil and gas within the country. A similar push is also expected in the case of rare earth and critical mineral, where an MoU involving Assam and Nagaland is among the initial steps. And, ethanol blending is expected to be stepped up, albeit in a calibrated fashion without aggressively pushing for it, officials said. EVs, especially for public transport and long-distance trucking, are also expected to be given a boost. On export front also govt is keen to derisk and reduce dependence on a few geographies after the tariff turbulence faced by Indian business in the wake of US actions last year. Principal secretary Shaktikanta Das, commerce secretary Rajesh Agrawal and foreign secretary Vikram Misri have held detailed consultations with missions across the world on the issue as India also seeks to be part of multiple global value chains. The commerce and industry ministry is working on the strategy to reduce dependence on import of over 100 items, officials said, adding, focus on feasibility of domestic production is being examined. In some cases, use of tools, such as minimum import price to check cheap imports from China, is being examined. There is a review of the PLI scheme. An analysis is being done by NITI Aayog and IIM Ahmedabad and learn from failure of some of them, such as advanced chemistry cell and battery manufacturing and build on success of electronics, pharma and white goods.