Gadkari calls for import cuts, export push to make India 3rd-largest economy

Union Minister Nitin Gadkari's statement regarding India's ambition to become the world's third-largest economy, through a twin strategy of reducing imports and boosting exports, encapsulates a critical aspect of India's current economic policy direction. This vision is not merely an economic target but a multi-faceted approach addressing energy security, environmental sustainability, and rural development, all under the overarching theme of 'Atmanirbhar Bharat' or self-reliant India.

**Background Context:** India's economic journey since independence has been marked by various phases, from a largely agrarian and socialist-leaning economy to a liberalized, market-driven one post-1991 reforms. Currently, India stands as the world's fifth-largest economy by nominal GDP, having surpassed the UK in 2022. The aspiration to reach the third position, behind only the United States and China, reflects a confident and ambitious growth trajectory. This goal aligns with long-term government visions, including the 'Make in India' initiative launched in 2014, aimed at fostering manufacturing and reducing import dependence, and the 'Atmanirbhar Bharat Abhiyan' introduced in 2020, which emphasizes self-reliance across various sectors.

**What Happened:** Minister Gadkari specifically highlighted two key areas. Firstly, the conversion of agricultural waste into bio-bitumen for road construction. This innovative approach serves multiple purposes: it addresses the problem of agricultural waste management (which often leads to stubble burning and pollution), provides an indigenous alternative to traditional bitumen (derived from crude oil), and thereby saves crucial foreign exchange. Secondly, the exploration of green hydrogen-powered trucks signifies India's commitment to decarbonizing its transport sector, a major contributor to air pollution and greenhouse gas emissions. These initiatives are concrete steps towards reducing India's significant reliance on imported crude oil, which is a major drain on the country's foreign exchange reserves and contributes substantially to its Current Account Deficit (CAD).

**Key Stakeholders:** Several entities are crucial to this vision. The **Ministry of Road Transport and Highways (MoRTH)**, led by Nitin Gadkari, is at the forefront, driving infrastructure development and promoting sustainable technologies like bio-bitumen and green hydrogen. **Farmers and the agricultural sector** are significant stakeholders, as the valorization of agricultural waste into bio-bitumen can provide them with additional income streams, improving rural livelihoods. The **oil and gas industry** will be impacted by reduced crude oil imports, prompting them to explore diversification into biofuels and green energy. The **automobile manufacturing sector** will play a pivotal role in developing and adopting green hydrogen technologies. Furthermore, **export promotion councils** and the **Ministry of Commerce and Industry** are vital for identifying new markets and facilitating an export-led growth strategy. Ultimately, the **general public** benefits from improved infrastructure, a cleaner environment, and a stronger, more stable economy.

**Significance for India:** The push for import reduction and export enhancement holds immense significance. Economically, it directly impacts India's Balance of Payments, helping to manage the CAD and stabilize the rupee. Reducing crude oil imports enhances **energy security**, making India less vulnerable to geopolitical shocks and volatile global oil prices. The bio-bitumen initiative aligns perfectly with **sustainable development goals** (SDGs), particularly SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production), by promoting resource efficiency and waste utilization. The focus on green hydrogen is a leap towards achieving India's ambitious climate targets, including its pledge to achieve Net Zero emissions by 2070, as articulated at COP26. Socially, converting agricultural waste into a valuable resource can boost **rural livelihoods** and address environmental issues like air pollution from stubble burning. Politically, achieving the status of the third-largest economy would significantly enhance India's global standing and influence.

**Historical Context:** India's dependence on energy imports has been a persistent challenge, particularly since the oil shocks of the 1970s. Efforts at import substitution were prominent in the initial post-independence decades, but the current strategy emphasizes a judicious balance of domestic production and export-led growth. The drive to reduce crude oil imports harks back to national energy security concerns that have shaped India's foreign policy and economic planning for decades. The emphasis on sustainable practices also reflects a global shift towards green economies, where India, as a developing nation, aims to lead by example.

**Future Implications:** This strategic direction has several future implications. It could lead to a more diversified and resilient Indian economy, less susceptible to external shocks. Increased domestic manufacturing and export competitiveness could create millions of jobs. The widespread adoption of green technologies like bio-bitumen and green hydrogen could position India as a leader in sustainable infrastructure and clean energy, potentially attracting significant foreign investment in these sectors. The emphasis on value addition to agricultural waste could transform rural economies and foster a circular economy model. Success in these areas will be crucial for India to not only achieve its economic growth targets but also to fulfill its environmental commitments on the global stage.

**Related Constitutional Articles, Acts, or Policies:** While no single constitutional article directly mandates import reduction or export promotion, the **Directive Principles of State Policy (DPSP)** provide a framework for economic and social justice. **Article 38** directs the state to secure a social order for the promotion of welfare of the people, which includes economic prosperity and stability. **Article 39** mandates that the state should direct its policy towards securing that the ownership and control of the material resources of the community are so distributed as best to subserve the common good, and that the operation of the economic system does not result in the concentration of wealth. The environmental initiatives like green hydrogen and agricultural waste management align with **Article 48A**, which states that the State shall endeavour to protect and improve the environment and to safeguard the forests and wildlife of the country. Policies such as the **National Green Hydrogen Mission (launched in 2023)**, **National Policy on Biofuels (2018)**, **Foreign Trade Policy**, and schemes like **Make in India** and **Atmanirbhar Bharat Abhiyan** are direct manifestations of these broader principles, aiming to achieve the stated economic and environmental objectives.