Critical minerals, crucial for various industries and manufacturing processes, are gaining global importance amid post-pandemic supply chain shocks and export bans. Acknowledging the significance of these resources, India has taken strategic steps to strengthen its standing in the critical minerals sector. Its noteworthy initiatives include releasing a comprehensive critical minerals strategy and its recent entry into the Mineral Security Partnership.

India’s Role in the Mineral Security Partnership

The US-led Mineral Security Partnership aims to secure and diversify critical minerals supply chains vital to high-tech and renewable industries. India’s decision to become a member is driven by the desire for sustainable economic growth, particularly in the manufacturing sector and supply chain security.

On the geopolitical front, India’s involvement hints at strategic alignment with nations like the U.S. and Australia, indicating its readiness to diversify dependencies and collaborate for collective mineral security in the Asia-Pacific. It also reflects India’s aspirations to be a significant player in the global critical minerals market, positioning itself as a future mineral extraction and processing hub.

India’s Critical Minerals Strategy

India’s critical minerals strategy provides a comprehensive plan for a self-reliant India, known as Atmanirbhar Bharat. The process identifies 30 minerals, including battery metals like nickel, cobalt, and lithium, in addition to crucial manufacturing inputs such as copper and rare earth elements. The chosen critical minerals have broad applications across strategic sectors such as defense, electric vehicles, space, telecom, and high-tech electronics, making them essential for India’s national security and industrial policy.

Though rich in diverse mineral resources, India’s domestic mining sector faces notable challenges. The industry is marked by under-exploitation, corruption, and regulatory challenges, contributing to a mining output that falls short of its true potential. Moreover, a lack of advanced technology and skilled labor further hampers the sector’s efficiency. India’s newfound lithium reserves in the Jammu & Kashmir region represent a remarkable opportunity, yet the region’s restive political climate poses a challenge for exploitation.