ANALYSIS
Lack of investment in the management of water and oil has caused India to lurch from crisis to crisis
Despite all the strides the country has made since Independence, India has struggled to develop, manage and conserve two vital fluids — water and oil — that are essential for its economic health. Water and crude oil are the fluids that impact every citizen of this country and the sustained supply of both at an affordable cost and reliable quality is absent. Almost every year we have lurched from crisis to crisis because we have not invested enough in the development and management of water and oil.
Let’s start with oil. India is suffering from inordinately high fuel prices at the moment and with consumption rising steadily, the country is likely to remain woefully dependent on the import of crude oil. In 2012, India imported just over 171 million metric tonnes of crude oil while in 2017-2018, this figure has grown to over 220 million metric tonnes. The biggest oil suppliers to India include Iraq, Iran, Saudi Arabia, UAE, Nigeria and Venezuela. Statistics also show that the cost of imports has risen over 25 per cent in the past one year to $87 billion in 2017-18 and is expected to grow by another $26 billion in the current year.
It is no secret that the dependence on oil and gas imports for energy is very high for India. Currently, about 95 per cent of LPG and 86 per cent of crude oil that India consumes is imported. So when there is global volatility, the country suffers. The fall of the rupee combined with local taxes ensure that consumers end up with intimidating retail prices for oil and gas. And, with US sanctions on Iran curbing the supply of oil in the global markets, there is no guarantee that oil supplies will come down anytime soon.
The problems are there, but India is not bereft of solutions. Here are some steps which the country can take to minimize its dependence on foreign sourcing and reduce its fuel burden.
The national exploration policy has improved since the NDA government took charge, but still the pace and efficiency of domestic exploration and development of oil and gas have to be enhanced.
The second best option after domestic sources are those which may be global but owned by Indian companies. ONGC, Indian Oil and Bharat Petroleum are among the Indian companies that own oil and gas fields abroad. The acquisition of more should be made a key priority.
The focus on alternate energy, especially solar and wind energy, has picked up pace in recent years. These energy sources should try to replace fossil fuels as much as possible. Serious challenges remain on the transmission of solar energy which is impeding its large scale usage.
After years of confusion, the government seems to be coming around to a clear policy on promoting electric vehicles. This is the need of the hour as reducing dependence on petrol and diesel is the best option to prevent the shocks of volatile oil prices. These are some of the steps that could solve India’s oil problems.
Moving on to water, India’s biggest problem is its over-dependence on the monsoon. Just 60 per cent of the country receives irrigated water. The rest of the land is dependent on monsoon rains. The major problem here though is that India has not invested in irrigation for decades. Though investment in irrigation is rising, it will take years for the country to reduce its reliance on the monsoon. Even if it does this, the country also has to deal with the problem of water wastage with rainwater harvesting struggling to become popular in many parts of urban India. In non-urban areas, poor water management, deforestation and unchecked development are not allowing water bodies to be sufficiently regenerated.
The recent floods in Kerala have highlighted another disappointing dimension of India’s dismal water management. The management of river dams by state authorities was so poor that much of the natural disaster’s impact was caused by waters released by the dams. Even though the dams were almost full before that phase of the heaviest rains, the water was not released in anticipation. As a result, when the rains intensified, the dam waters were also released. A combination of heavy rains and dam water flowing together was more than the capacity of rivers which flooded vast stretches of habitation and arable land.
This swing between drought and floods is an enduring tragedy for India’s economy and ecology. Add to this the volatility and import dependence on oil, and it becomes clear that India is wasting vital fluids and resources. Investment in water management and oil production is a priority for the country’s growth, for without it, India will remain stunted and weak. Focusing on these two should be a national priority with equal and urgent action from states.
The writer is an economic analyst and author of Kranti Nation: India and The Fourth Industrial Revolution. Views are personal.
Delhi: All primary schools closed, classes shifted to online mode due to rising pollution levels
BIG trouble for Anil Ambani, criminal charges against his Rs 14422 crore company over...
Bhool Bhulaiyaa 3 producer calls Singham Again team 'unfair' after the box office win
From Play to Pay, Gaming Is Big Business And A Genuine Professional Prospect
Leasehold vs Freehold: Exploring Options for Expats and Investors in Dubai
Mukesh Ambani's Reliance, Disney complete Rs 70352 crore media merger, to be headed by...
Badshah lands in legal trouble, case registered against rapper for...
GRAP III imposed in Delhi: What is allowed, what is banned amid 'severe' air quality
'Throwing me in deep end': Ricky Ponting takes fresh dig at Gautam Gambhir over Virat Kohli remarks
Revolutionizing Inventory Management in the Cloud Era: Pradeep Kumar’s Strategic Innovations
Delhi: AAP's Mahesh Khichi elected mayor as party defeats BJP in MCD polls
Delhi Air Pollution: GRAP 3 to be imposed in national capital from Nov 15, strict ban on...
WATCH: Inside Rinku Singh's Rs 3.5 crore luxurious house with rooftop bar, private pool
Renowned Yoga Guru Sharath Jois passes away at 53 after suffering heart attack
NASA alert! Giant 'God Of Chaos' asteroid set for close approach to Earth, may trigger astroquakes
UPPSC protest BIG update: RO-ARO exam postponed, PCS prelims to be held in one day
This man earned more money than Mukesh Ambani and world's richest man Elon Musk in one day, he is...
'World's best....': Japan vlogger's reaction to Bengaluru airport goes viral
Sania Mirza named Sports Ambassador of THIS city, not Delhi, Hyderabad, Jaipur
Shloka Mehta turns heads in sleek white gown at Tira store launch, see pics
Amid Abhishek Bachchan and Aishwarya Rai divorce rumours, Jaya Bachchan surprises everyone with...
IND vs SA: Arshdeep Singh goes past Bhuvneshwar Kumar to become Indian pacer with most....
Mukesh Ambani, Isha Ambani’s luxury retail chain opens new store at...
PM Modi to receive Dominica’s highest national award for...
Shraddha Kapoor says people with big foreheads are…
'Busy making...': Kanhaiya Kumar sparks row with remarks on Devendra Fadnavis' wife; BJP hits back
'Full baarati vibes': Vietnamese man's epic 'nagin dance' steals show at Mumbai event
Tilak Varma credits THIS player for his century against South Africa, says 'He gave me...'
UPSC IFS Mains Admit Card 2024 to be released today at upsc.gov.in, check direct link to download
'Be prepared for...': Rupali Ganguly's stepdaughter Esha Verma REACTS to Rs 50 crore defamation case
Saudi, Iran: Cautious dance toward détente?
Anushka Sharma shares glimpse of Children’s Day special dish for daughter Vamika, son Akaay
Jaw-dropping! Man wraps massive green anaconda around his shoulders, internet says...
Donald Trump plans to end Russia-Ukraine war with THIS move, is expected to 'soon' appoint...
As pollution worsens in Delhi with AQI at 'severe' level, experts at COP29 urge India to...
SDM Assault Case: 60 people arrested in Rajasthan's Tonk
Veg thali cost more than non-veg thali in October, here's why
Land drug trafficking patterns in North-Eastern Region
Shillong Teer Result November 14, 2024: Know updates on lucky winning numbers
Mukesh Ambani's SUPERHIT offer for Jio users: Get unlimited validity for 84 days at just Rs...
Delhi air quality dips to 'severe' category as AQI nears dangerous...
Bigg Boss OTT-fame Bhojpuri actress Akshara Singh receives extortion threat
‘All I do is…’: After Arjun Kapoor confirms breakup with Malaika Arora, her cryptic video goes viral