There will be some impact but not massive on India: Vedanta Chairman Anil Agarwal on US-Iran 'peace deal'
Mumbai, June 15
Vedanta Group Chairman Anil Agarwal on Monday said that while any US-Iran deal or geopolitical resolution is beneficial for global stability, the direct impact of such developments on India's economy is relatively limited
Speaking to ANI on the sidelines of the group's historic mega-listing ceremony at the National Stock Exchange (NSE) today, Agarwal highlighted that India is primarily a consuming market rather than an exporting one and because India absorbs the vast majority of its own produced materials, the immediate economic shock of regional disruptions or peace deals in West Asia does not affect India in the same way it affects export-heavy nations
"India has very little [to lose]. Our needs are very much, 1.5 billion people. All the countries where they produce, they export. We don't have to export. We have our own requirement. There will be some impact. But it is not a massive impact. Because our production is here. And we sell our material here."
US and Iran have agreed to a "memorandum of understanding" due to be signed in Switzerland on Friday, which will end a US blockade of Iranian ports and reopen the Strait of Hormuz. "The deal with the Islamic Republic of Iran is now complete," US President Donald Trump announced on Sunday on his Truth Social platform. "Ships of the world, start your engines. Let the oil flow!" Iran's deputy foreign minister, Kazem Gharibabadi on Monday, said a broader deal that would cover sanctions relief for Iran would be worked out during a 60-day ceasefire.
Addressing concerns over whether cooling global commodity prices would prompt a rethink of the group's massive $5 billion capex plan for Vedanta Oil and Gas, Agarwal remained resolute about building domestic energy security.
"Vedanta Oil and Gas has never lacked money. And we also got a very good return. Those who invested also got good money," he affirmed, emphasizing that domestic exploration is the only way to make India self-sufficient and shield it from external supply shocks.
Asked about the immediate listing pressure - given that a couple of new listings hit their lower circuits right out of the gate today- and about plans to trim the group's debt, Agarwal shrugged off market volatility.
"This is the market. Something or the other has happened in the market," he noted. "I take full responsibility of every investor, everyone who has joined our company. This is what I keep in mind that my investor should earn the best money here, this company should run the best."
The corporate veteran also downplayed worries regarding the Wholesale Price Index (WPI) spiking to a four-year high of nearly 10 per cent amid soaring fuel and power costs. "It may react. There will be some reaction. But everybody reacts. AI has come. A lot of new technology has come. We are balancing," Aggarwal said.
Earlier, addressing the gathering from the NSE dais today, Agarwal likened the conglomerate's demerger to a mature banyan tree giving rise to young, independent, and powerful entities. "Now this banyan tree has become young... So our five banyan trees have become young. They are ready. They have to be ready and independent," he declared, mapping out a bold vision to scale each independent business into a $100 billion enterprise.
The event was also attended by NSE Managing Director and CEO Ashish Kumar Chouhan, alongside Vedanta Group Vice-Chairman Navin Agarwal, Director Priya Agarwal Hebbar, and Board Member Munsif Agarwal. Welcoming the four new listed entities, Chouhan lauded India's thriving capital ecosystem, noting that the NSE facilitated a record 222 IPOs in FY26, raising about Rs 1.89 lakh crore.
— ANI
Reader Comments
Sahi baat hai! We are a consuming nation, but let's not underestimate the impact. Lower oil prices mean cheaper imports, which will reduce our current account deficit. And Agarwal's commitment to domestic energy security through Vedanta's capex plan is exactly what we need - make in India for India. But I hope he remembers the small investor too, especially with those listing pressures. 😅
Interesting perspective from India. As someone watching from abroad, I can see the logic - India's sheer size buffers it against external shocks. But I'd argue that any reduction in global tension is good for emerging markets like India. Lower oil prices mean lower input costs for businesses, which could boost manufacturing. Though I'm curious how this 'peace deal' actually plays out in 60 days...
While Agarwal's confidence is reassuring, I worry about the debt levels. ₹5 billion capex plan is huge, and if commodity prices soften too much, it could put pressure on margins. Yes, we are a consuming market, but our infrastructure and energy demands are still heavily import-dependent. The demerger into 5 entities sounds ambitious - let's hope each banyan tree bears fruit for investors. 🏦
Love the banyan tree analogy! But I wish he'd addressed the WPI spike more seriously. 10% inflation hits the common man hard - vegetable prices, fuel costs, everything goes up. Yes, AI and technology can help balance things, but what about today? The deal with Iran might bring some relief, but we need more concrete steps for domestic price stability. Still, respect his vision for energy self-sufficiency. 💪
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