India’s Cabinet Committee on Economic Affairs has approved a new investment policy for urea production, marking a decisive step toward reducing the country's dependence on imported fertilizers.
The policy aims to establish eight new domestic plants, a move designed to bolster self-reliance in a sector critical to the nation's agricultural output.
The approval follows extensive consultations with industry stakeholders, according to reports from Hindu Businessline.
By incentivizing domestic capacity, the government seeks to stabilize supply chains and mitigate the volatility associated with global fertilizer markets.
This structural shift is likely to have downstream implications for natural gas and LNG demand, as urea production is energy-intensive and often relies on gas feedstocks.
For investors, the policy represents a long-term play on India's agricultural infrastructure.