India's Strategic Shift Towards Critical Minerals
In recent years, India has repositioned critical minerals to be a fundamental component of its industrial, energy, and geopolitical strategies. This shift is evident in the Union Budget, which emphasizes the importance of critical minerals in policy-making.
Policy Developments
- India has identified 30 critical minerals and eased exploration restrictions for these minerals.
- The National Critical Mineral Mission (NCMM) was launched with a budget of ₹16,300 crore to intensify mineral exploration.
Challenges and Opportunities
- Mineral Processing Bottleneck: China dominates the global mineral processing capacity, controlling up to 90% for several critical minerals.
- India's Capabilities: India already produces high-purity minerals like copper, graphite, and rare earth oxides but primarily for conventional uses.
- Technology and Capacity Needs: Meeting clean tech demands requires advancing technology and expanding capacity.
Key Priorities for Execution
- Demand Creation:
- Remove import duties on capital goods for mineral processing.
- Encourage domestic manufacturing of batteries, solar modules, and electric vehicles to boost demand for processed minerals.
- AI-Driven Exploration:
- The NCMM targets 1,200 projects by FY2031, with tax deductions for exploration expenses.
- Adopt AI techniques for improved prospectivity analysis and site discoveries.
- Geopolitical Leverage:
- Capitalize on global disruptions to build technological sovereignty.
- Form partnerships with countries like Australia, Japan, and the US to enhance processing capabilities.
Conclusion
India's leadership in critical minerals will rely on coordinated efforts between ministries, proactive state actions, and robust global partnerships. Rishabh Jain from CEEW emphasizes that executing these strategies with speed and confidence is crucial for India to realize its ambitions by 2026.
