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India's Urea Subsidy Hits ₹1.65 Lakh Cr, Green Urea Mission Proposed to Cut Imports & Emissions by 2040

EconomyAgricultureEnvironmentScience & TechCORE
Target:UPSC GS-IIIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
29 Mar 2026
~2 min
Source: Indian Express
Key Data:₹1.65 lakh crore90% import-dependent56% of all fertilisers80% of nitrogenous fertilisers20% cost advantage by 2030₹20,000 crore over 5 years
Bodies:Fertiliser Corporation of India
Practice MCQs from today's news ▸
What This Article Covers

1.India's urea consumption is 90% import-dependent, with subsidies rising from ₹500 crore (1980-81) to ₹1.65 lakh crore (2022-23).

2.Green urea, produced via electrolysis, carbon capture, and renewable power, is projected to be 20% cheaper than grey urea by 2030 and could eliminate imports by 2040.

3.Examiners can ask about the National Green Hydrogen Mission, Carbon Capture Utilisation & Storage (CCUS) funds, and the fiscal/environmental benefits of transitioning to green urea.

The Big Picture
Prelims · HighMains · High

India's urea subsidy has ballooned to ₹1.65 lakh crore, with 90% of consumption import-dependent, creating fiscal and energy insecurity. The article proposes a Green Urea Mission using renewable-powered electrolysis and carbon capture to eliminate imports, cut subsidies by 65%, and reduce GHG emissions by 60% by 2040. This is critical for UPSC aspirants due to its linkages with food security, energy transition, and economic self-reliance.

Exam Lens

Quick Exam Facts From News

Urea Subsidy (2022-23)₹1.65 lakh crore
Urea Import Dependency90% of consumption
Green Urea Cost Advantage by 2050Nearly 100% lower than grey urea
CCUS Budget Allocation₹20,000 crore over 5 years
Projected Subsidy Cut by 204065% reduction
Urea in Nitrogenous Fertiliser80% share

1-Minute Revision

  • ›Urea Subsidy (2022-23): ₹1.65 lakh crore
  • ›Urea Import Dependency: 90% of consumption
  • ›Target this Data: Urea subsidy of ₹1.65 lakh crore for 2022-23 and 90% import dependency.
  • ›Target this Nodal Body: The National Green Hydrogen Mission and the Department of Fertilizers (Ministry of Chemicals and Fertilizers).
  • ›Target this Policy: The ₹20,000 crore allocation for Carbon Capture, Utilisation and Storage (CCUS) over five years.

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageMedium

The National Green Hydrogen Mission, mentioned in the context of transitioning urea production, falls under the purview of which Union Ministry?

Q2Statement-basedHard

Consider the following statements regarding urea production and consumption in India:

1. Over 80 per cent of domestic urea is produced using imported natural gas.

2. Urea accounts for nearly 80 per cent of all nitrogenous fertilisers consumed in India.

3. The study cited in the article projects that the levelised cost of green urea will be lower than that of grey urea only after the year 2050.

Which of the statements given above is/are correct?

Q3Data-centricEasy

According to the article, what was the urea subsidy amount for the financial year 2022-23?

Q4Application/ImpactMedium

What is the primary objective proposed by the article for redirecting the National Green Hydrogen Mission and the Carbon Capture budget?

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