In contemporary geopolitics, food security is no longer merely an agricultural issue—it is a question of national security, strategic autonomy, and state capacity. The disruptions caused by the COVID-19 pandemic, the Russia-Ukraine conflict, and the ongoing geopolitical instability in West Asia have exposed the vulnerabilities of global food and fertilizer supply chains. Nations dependent on imported agricultural inputs have found themselves at the mercy of volatile commodity markets, disrupted shipping routes, and strategic resource nationalism.
Against this backdrop, India’s fertilizer story over the past twelve years represents one of the least discussed but most consequential transformations of the Modi era. Under the leadership of Prime Minister Shri Narendra Modi, India has moved from a position of chronic fertilizer dependence and production stagnation toward building a resilient, diversified, and increasingly self-reliant fertilizer ecosystem capable of protecting over 140 million farming households from global shocks.
The journey from import vulnerability to strategic resilience illustrates a broader philosophy underpinning the vision of Viksit Bharat 2047: economic sovereignty through domestic capacity creation.
The Fertilizer Question: Why It Matters for India’s Future
India today is the world’s second-largest consumer and third-largest producer of fertilizers. Nearly half of India’s workforce continues to depend directly or indirectly on agriculture, while food security for 1.4 billion citizens rests upon uninterrupted access to agricultural inputs.
Historically, however, India’s fertilizer sector faced three structural challenges:
- Heavy dependence on imported urea, phosphatic and potassic fertilizers;
- Closure and underutilization of domestic fertilizer plants;
- Exposure to global energy and commodity price volatility.
These vulnerabilities became starkly visible during successive global crises after 2020, when fertilizer prices rose to historic highs and several countries experienced severe shortages. For India, therefore, fertilizer self-reliance became not merely an industrial objective but a strategic imperative.
The Great Urea Revival: Reversing Three Decades of Stagnation
Perhaps the most remarkable achievement of the last twelve years has been the revival of domestic urea manufacturing. Between the early 1990s and 2014, India witnessed virtually no major expansion in urea production capacity. Several public sector fertilizer plants remained closed for decades, forcing the country into growing import dependence. The post-2014 period fundamentally altered this trajectory.
A New Generation of Fertilizer Infrastructure
Since 2014, six major urea projects have been commissioned or revived, including:
- Gorakhpur (Uttar Pradesh),
- Sindri (Jharkhand),
- Barauni (Bihar),
- Ramagundam (Telangana),
- Talcher (Odisha),
- Additional brownfield expansion projects.
Together, these facilities have added approximately 76.2 lakh metric tonnes (LMT) of annual capacity, with another 25.4 LMT expected shortly. This represents one of the largest fertilizer capacity expansion programs undertaken anywhere in the world in recent decades.
The impact has been transformative.
| Year | Domestic Urea Production |
|---|---|
| 2014-15 | 225 LMT |
| 2023-24 | 314.07 LMT |
| 2024-25 | 306.67 LMT |
This nearly 40 percent increase in domestic production capacity has significantly reduced India’s exposure to global supply disruptions. Equally important has been the implementation of the New Urea Policy (2015), which incentivized efficiency improvements and reportedly generated an additional annual production increase of 20–25 LMT beyond previous levels.
Building Strategic Resilience in a Fragmented World
The year 2026 presented perhaps the toughest stress test for India’s fertilizer security architecture. Escalating conflict in West Asia disrupted shipping through the Strait of Hormuz, increased natural gas prices, and threatened global fertilizer availability. Historically, such disruptions would have produced severe shortages and price shocks for Indian farmers. Instead, India demonstrated an emerging model of strategic state capacity.
The Government adopted a multi-pronged crisis management strategy:
- Constituted seven Empowered Groups of Secretaries;
- Conducted multiple inter-ministerial reviews;
- Diversified import sourcing beyond traditional suppliers;
- Activated alternative shipping corridors;
- Coordinated natural gas allocation for domestic plants;
- Executed global joint procurement strategies.
The results were unprecedented.
The Subsidy State as a Strategic Shock Absorber
One of the defining features of India’s fertilizer policy under Prime Minister Modi has been the use of fiscal capacity to shield farmers from global volatility.
International fertilizer markets witnessed unprecedented price increases after 2021 due to:
- disruptions in natural gas markets,
- Russia-Ukraine conflict,
- supply chain fragmentation,
- geopolitical tensions in West Asia.
Yet Indian farmers experienced virtually no increase in retail fertilizer prices.
Global vs Indian Farmer Prices
| Fertilizer | Global Price | Farmer Price in India |
| Urea (45 kg) | Above ₹4,100 | ₹266.50 |
| DAP (50 kg) | Above ₹5,000 | ₹1,350 |
This price insulation required enormous fiscal intervention. India’s fertilizer subsidy expenditure crossed historic levels after the pandemic, with total allocations and supplementary provisions touching nearly ₹1.9 lakh crore in recent years.
Critics often frame subsidies as fiscal burdens. However, from a strategic policy perspective, fertilizer subsidies during periods of global crisis functioned as:
- inflation stabilizers,
- food security insurance,
- rural demand support,
- political-economic shock absorbers.
In effect, the Indian state absorbed international inflation so that Indian farmers did not have to.
Beyond Self-Reliance: Toward Nutritional Sovereignty and Sustainable Agriculture
Yet, the Modi government’s fertilizer strategy has not been confined merely to expanding domestic production and reducing import dependence. A more profound transformation is underway—one that seeks to shift India’s agricultural paradigm from fertilizer quantity to nutrient quality, efficiency, and sustainability.
For decades, India’s agricultural growth model was heavily dependent on the indiscriminate use of chemical fertilizers, particularly urea. While this approach helped achieve food self-sufficiency during the Green Revolution era, it also created serious structural imbalances in soil health. Excessive nitrogen application, coupled with inadequate use of phosphatic and potassic nutrients, led to declining soil fertility, reduced crop productivity, and increased environmental stress.
Agricultural scientists recommend an ideal Nitrogen:Phosphorus (N:P) application ratio of 4:2:1 for balanced crop nutrition. However, in several agricultural regions of India, actual usage patterns have often been distorted to 6:2:1 or even higher, reflecting an over-reliance on subsidized nitrogenous fertilizers. This imbalance has contributed to soil degradation, declining nutrient-use efficiency, and increased input costs for farmers.
Recognizing that true agricultural self-reliance cannot be achieved without restoring soil health, the Government of India has launched a comprehensive strategy aimed at promoting balanced and sustainable nutrient management. This strategy includes large-scale adoption of:
- Nano fertilizers, particularly Nano Urea and Nano DAP, which enhance nutrient-use efficiency while reducing environmental impact;
- Fortified Organic Manure (FOM) and Liquid Fortified Organic Manure (LFOM) to improve soil organic carbon content;
- Phosphate-Rich Organic Manure (PROM) to supplement phosphorus requirements sustainably;
- Green manuring practices, which naturally enrich soil fertility and reduce chemical dependence;
- Balanced nutrient application campaigns, supported by soil testing, awareness programs, and scientific advisories.
The government’s nationwide awareness campaign conducted between March and May 2026, under the broader vision of protecting “Dharati Maa”, has already begun producing measurable outcomes. Early indicators demonstrate a significant behavioral shift among farmers:
- Combined sales of eco-friendly fertilizer alternatives such as FOM, LFOM, and PROM increased by nearly seven times in FY 2025-26 compared to the previous fiscal year;
- Consumption of ammonium sulphate, an important source of both nitrogen and sulphur, increased by approximately 60,000 tonnes, helping improve nutrient balance;
- Green manuring activities expanded to a record 1.84 lakh hectares, facilitated through the extensive network of Krishi Vigyan Kendras (KVKs) across the country.
Simultaneously, initiatives such as the Soil Health Card Scheme, which has issued over 23 crore soil health cards, continue to provide farmers with scientific recommendations for optimal fertilizer application. The promotion of nano fertilizers by institutions such as IFFCO also represents a significant technological leap toward precision agriculture and reduced fertilizer intensity.
This transition marks a critical policy shift—from maximizing fertilizer consumption to maximizing nutrient efficiency. It reflects a broader evolution in India’s agricultural strategy: from ensuring food security alone to achieving nutritional sovereignty, ecological sustainability, and long-term soil resilience.
As India advances toward the goal of Viksit Bharat 2047, the future of agricultural prosperity will depend not merely on producing more fertilizers, but on producing healthier soils, more resilient farming systems, and a sustainable foundation for the nation’s food security.
The Emerging Green Fertilizer Economy: Decarbonizing India’s Agricultural Future
The next frontier of India’s fertilizer revolution lies not merely in achieving self-reliance, but in building a globally competitive, low-carbon fertilizer ecosystem aligned with the country’s long-term climate and industrial ambitions. As the world transitions toward net-zero economies, India’s fertilizer sector is emerging as a critical arena where energy security, agricultural sustainability, and green industrial policy converge.
The production of conventional fertilizers, particularly ammonia-based fertilizers such as urea, remains highly energy-intensive and heavily dependent on natural gas. Globally, the fertilizer industry accounts for approximately 2 percent of total energy consumption and nearly 1.5 percent of global greenhouse gas emissions, making decarbonization an urgent priority. For a country like India—which imports a substantial portion of its natural gas requirements—the transition to green fertilizers represents both an environmental necessity and a strategic economic opportunity.
Recognizing this opportunity, the Government of India, under the National Green Hydrogen Mission, has initiated plans for the procurement and utilization of approximately 7.24 lakh metric tonnes of green ammonia annually. Produced using renewable electricity and green hydrogen instead of fossil fuels, green ammonia has the potential to significantly reduce carbon emissions while decreasing dependence on imported hydrocarbon feedstocks.
This initiative marks a paradigm shift in India’s approach to fertilizer production. Rather than viewing fertilizers solely through the lens of agricultural inputs, policymakers are increasingly positioning the sector at the intersection of multiple national priorities:
- Green hydrogen development, creating demand for one of the world’s most promising clean energy technologies;
- Green ammonia production, establishing India as a potential global manufacturing hub;
- Fertilizer security, reducing exposure to volatile international energy markets;
- Climate commitments, supporting India’s target of achieving net-zero emissions by 2070;
- Industrial competitiveness, fostering new investments, technologies, and employment opportunities.
India’s vast renewable energy potential further strengthens this strategy. With over 220 GW of installed renewable energy capacity and ambitious targets of reaching 500 GW of non-fossil fuel energy capacity by 2030, the country possesses the foundational infrastructure necessary to support large-scale green hydrogen and green ammonia production.
Several public and private sector enterprises have already begun exploring investments in green ammonia projects integrated with fertilizer manufacturing facilities. Over time, this transition could help India reduce the carbon footprint of its agricultural sector while simultaneously building a globally competitive green manufacturing ecosystem.
Beyond environmental benefits, the emergence of a green fertilizer economy carries significant geopolitical implications. As countries increasingly impose carbon border taxes and prioritize low-carbon supply chains, early movers in green industrial production are likely to gain substantial strategic advantages. By integrating renewable energy, green hydrogen, fertilizer production, and agricultural sustainability into a unified policy framework, India has the opportunity to become one of the world’s first major economies to develop a comprehensive “green food security architecture.”
The fertilizer sector may therefore emerge as one of the earliest and most visible examples of India’s broader green industrial transformation—demonstrating how the vision of Atmanirbhar Bharat and Viksit Bharat 2047 can simultaneously advance economic growth, strategic autonomy, and environmental stewardship.
From Fertilizer Security to Strategic Agricultural Sovereignty
Despite the remarkable achievements of the past twelve years, India’s journey toward becoming a fully self-reliant and globally competitive fertilizer power remains a work in progress. As the country advances toward the ambitious vision of Viksit Bharat 2047, several structural challenges will require sustained policy attention, institutional innovation, and strategic investment.
1. Reducing Import Dependence in Phosphatic and Potassic Fertilizers
While India has made substantial progress in achieving self-sufficiency in urea production, dependence on imports remains significant in the phosphatic and potassic (P&K) fertilizer segment. India continues to import a large proportion of its requirements for phosphate rock, phosphoric acid, and potash from countries such as Morocco, Saudi Arabia, Jordan, Russia, and Canada. This dependence exposes Indian agriculture to geopolitical risks, currency volatility, and supply-chain disruptions.
Addressing this challenge will require a multi-pronged strategy involving overseas resource acquisition, long-term supply agreements, domestic beneficiation technologies, strategic reserves, and accelerated investment in alternative nutrient sources and recycling technologies.
2. Ensuring Fiscal Sustainability of Fertilizer Support
India’s fertilizer subsidy regime has played a crucial role in protecting farmers from global price shocks and ensuring food security. However, sustaining large-scale subsidy commitments over the long term requires continuous reforms to improve efficiency, transparency, and targeting.
The next phase of reform may involve greater use of digital technologies, nutrient-based support mechanisms, direct benefit transfers, precision agriculture tools, and data-driven fertilizer management systems. The challenge for policymakers will be to balance fiscal prudence with the imperative of safeguarding farmer welfare and national food security.
3. Building Climate-Resilient Agricultural Systems
Climate change presents a growing challenge to India’s agricultural economy. Rising temperatures, erratic rainfall patterns, soil degradation, and water stress will increasingly shape fertilizer demand and agricultural productivity. Future fertilizer strategies must therefore move beyond conventional production targets and integrate broader goals of climate resilience.
This transition will require the adoption of:
- low-carbon fertilizer technologies,
- water-efficient agricultural practices,
- regenerative agriculture models,
- carbon-neutral fertilizer production systems,
- climate-smart nutrient management strategies.
Building resilience at the farm level will be critical to ensuring the long-term sustainability of India’s food systems.
4. Transitioning Toward Nutrient Efficiency and Precision Agriculture
For decades, fertilizer policy has largely focused on ensuring the availability and affordability of inputs. The next phase of agricultural transformation must focus on improving nutrient-use efficiency and restoring soil health.
India’s future agricultural competitiveness will depend increasingly on:
- precision farming technologies,
- soil health management,
- satellite-based agricultural monitoring,
- artificial intelligence-driven advisory systems,
- customized nutrient solutions,
- nano fertilizers and smart fertilizers.
The objective is no longer merely to increase fertilizer consumption, but to maximize agricultural productivity while minimizing ecological costs.
The Strategic Significance of India’s Fertilizer Transformation
Yet despite these challenges, the strategic direction of India’s fertilizer policy is unmistakable.
The story of India’s fertilizer transformation over the past twelve years is not simply about producing more urea, expanding industrial capacity, or providing subsidies to farmers. It represents a much deeper transformation in the nature of state capacity itself—where industrial policy, food security, energy security, geopolitics, fiscal policy, environmental sustainability, and national security increasingly converge.
The crises of the past decade—from the COVID-19 pandemic to the Russia-Ukraine conflict and geopolitical tensions in West Asia—have demonstrated that control over food systems and agricultural inputs constitutes a vital pillar of strategic sovereignty. Nations that possess resilient agricultural ecosystems and secure supply chains will enjoy advantages that extend far beyond the agricultural sector, influencing economic stability, social cohesion, and geopolitical leverage.
The journey toward Atmanirbhar Bharat in fertilizers therefore reflects a broader strategic vision. Under the leadership of Prime Minister Shri Narendra Modi, India is no longer merely pursuing food security in the traditional sense; it is laying the foundations for nutritional sovereignty, strategic agricultural autonomy, and long-term economic resilience.
As India advances toward the goal of Viksit Bharat 2047, the country’s fertilizer transformation offers an important lesson: in an increasingly uncertain world, securing the soil may prove to be one of the most consequential acts of securing the nation itself. The future of India’s rise as a developed nation will depend not only on its factories, highways, and digital infrastructure, but also on the strength, sustainability, and sovereignty of the systems that nourish its people.
