Critical Minerals: India's Strategic Shift and Policy Implementation
India prioritizes critical minerals for industrial, energy, and geopolitical strategy execution.
Photo by megh bhatt
Editorial Analysis
India has made significant strides in recognizing the strategic importance of critical minerals, shifting from viewing them as a niche topic to a core pillar of its industrial, energy, and geopolitical strategy. The focus has moved from policy formulation to execution, emphasizing the need for expertise, scale, speed, and depth in developing the sector.
Main Arguments:
- India has demonstrated a clear policy drive by identifying 30 critical minerals, easing mineral exploration for junior miners, and rationalizing royalty rates. The launch of the National Critical Mineral Mission (NCMM) with a budgetary outlay of ₹16,300 crore underscores the government's commitment.
- While mineral extraction is a bottleneck, processing capabilities are also crucial. India already possesses the capacity to process certain minerals to high purity levels, including copper, graphite, rare earth oxides, tin, and titanium. Meeting the demands of clean tech and defense sectors requires further technological upgrading, refining, and capacity expansion.
- Budget 2026 prioritizes implementation by creating demand avenues for processed minerals and removing import duties on capital goods used in processing. Assured domestic demand for processed minerals is essential for investors, which can be achieved by boosting the deployment of locally-made electric vehicles, batteries, solar modules, and wind turbines.
- Adopting an Artificial Intelligence (AI)-first approach to mineral exploration is vital. The NCMM aims for 1,200 exploration projects by FY2031, and the Budget enhances project viability through tax deductions for exploration expenditure. Leveraging technology, particularly by extending AI capabilities from hydrocarbon discovery to the National Geoscience Data Repository, can improve prospectivity analysis and aid new site discoveries.
- Leveraging geopolitical disruption to build technological sovereignty is crucial. The weaponization of rare earth magnets and battery supply chains has exposed vulnerabilities. The government's response, including rare earth corridors and reduced import duties on monazite sands, is timely. States should utilize existing infrastructure and manpower to meet global demand, creating jobs and regional growth.
- International partnerships with countries like Australia, European countries, Japan, the United Kingdom, and the United States are key. These nations possess advanced minerals processing and component manufacturing capabilities. Encouraging these firms to establish facilities in India to serve global markets is essential, supported by regulatory certainty, legal frameworks, market access, and research collaboration.
Conclusion
Policy Implications
India is strategically shifting its focus to critical minerals, recognizing their pivotal role in industrial growth, energy security, and geopolitical influence. The government has launched the National Critical Mineral Mission (NCMM) with a substantial budgetary outlay of ₹16,300 crore. This mission aims to secure the supply of essential minerals and reduce dependence on foreign sources. The Budget 2026 emphasizes the implementation of the NCMM, focusing on creating demand avenues for processed minerals, adopting an AI-first approach to mineral exploration, and leveraging geopolitical disruptions to build technological sovereignty. International collaborations with countries such as Australia, the UK, and the US are deemed crucial for accessing advanced minerals processing and component manufacturing capabilities. This strategic move is intended to bolster India's manufacturing sector and enhance its position in the global supply chain.
The NCMM's focus on creating demand avenues for processed minerals involves incentivizing domestic industries to utilize locally sourced critical minerals. The adoption of an AI-first approach to mineral exploration aims to accelerate the discovery of new mineral deposits within India. Furthermore, the government intends to capitalize on geopolitical disruptions to foster technological sovereignty in critical mineral processing and manufacturing. The partnerships with Australia, the UK, and the US are geared towards acquiring expertise and technology in advanced mineral processing, which is essential for producing high-value components.
This focus on critical minerals is crucial for India to secure its industrial future and reduce reliance on imports, especially from countries with monopolistic control over these resources. The NCMM and related policy initiatives are particularly relevant for UPSC examinations, specifically in the context of GS Paper III (Economy) and GS Paper II (International Relations), as they address issues of resource security, industrial policy, and international cooperation.
Key Facts
Critical minerals are now a core pillar of India’s industrial, energy, and geopolitical strategy.
India has a list of 30 critical minerals.
The National Critical Mineral Mission (NCMM) has a budgetary outlay of ₹16,300 crore.
India has the capabilities to process minerals like copper, graphite, rare earth oxides, tin, and titanium to high purity levels.
UPSC Exam Angles
GS Paper III (Economy): Resource security, industrial policy, mineral exploration
GS Paper II (International Relations): International cooperation, strategic partnerships, geopolitical implications
Potential questions on NCMM objectives, technological sovereignty, and international collaborations
In Simple Words
India is now seriously focusing on critical minerals, which are essential for industries like clean energy and defense. The government is trying to find and process these minerals within the country. This shift aims to make India more self-reliant and less dependent on other countries for these vital resources.
India Angle
This affects everyday Indian life because critical minerals are used in things like electric vehicles, solar panels, and batteries. If India can produce these minerals locally, it can lower the cost of these technologies, making them more accessible to the average Indian.
For Instance
Think of it like sourcing ingredients for your favorite dish. If you have to import all the spices, it becomes expensive. But if you can grow them in your backyard, the cost comes down, and you have more control over the quality.
It matters because having a secure supply of critical minerals can lead to more jobs, cheaper clean energy, and a stronger economy. This can improve the quality of life for all Indians.
Critical minerals are now a strategic priority for India, paving the way for self-reliance and economic growth.
India has shifted its focus to critical minerals, recognizing their importance in industrial, energy, and geopolitical strategy. The government has launched the National Critical Mineral Mission (NCMM) with a budgetary outlay of ₹16,300 crore and has eased mineral exploration for junior miners.
The Budget 2026 emphasizes implementation, focusing on creating demand avenues for processed minerals, adopting an AI-first approach to mineral exploration, and leveraging geopolitical disruption to build technological sovereignty. International partnerships with countries like Australia, the UK, and the US are also crucial for accessing advanced minerals processing and component manufacturing capabilities.
Expert Analysis
India's strategic shift towards securing critical minerals involves several key concepts. The National Critical Mineral Mission (NCMM), launched with a budgetary outlay of ₹16,300 crore, is central to this strategy. The NCMM aims to ensure a stable supply of critical minerals by enhancing domestic exploration and production, as well as securing access to resources abroad through strategic partnerships. This mission is crucial for reducing India's dependence on imports and bolstering its manufacturing sector.
Another important concept is technological sovereignty. In the context of critical minerals, technological sovereignty refers to India's ability to develop and control the technologies required for processing and manufacturing products from these minerals. The Budget 2026 emphasizes leveraging geopolitical disruptions to build technological sovereignty, indicating a proactive approach to developing indigenous capabilities in critical mineral processing. This involves investing in research and development, promoting innovation, and fostering collaboration between industry and academia.
International partnerships play a vital role in India's critical mineral strategy. Collaborations with countries like Australia, the UK, and the US are essential for accessing advanced minerals processing and component manufacturing capabilities. These partnerships facilitate the transfer of technology, expertise, and investment, enabling India to enhance its domestic capabilities. This approach aligns with the broader goal of strengthening India's position in the global supply chain for critical minerals.
For UPSC aspirants, understanding these concepts is crucial for both prelims and mains examinations. Questions may focus on the objectives and strategies of the NCMM, the significance of technological sovereignty, and the role of international partnerships in securing critical mineral supplies. Additionally, aspirants should be aware of the economic and geopolitical implications of India's critical mineral strategy.
Visual Insights
Key Statistics from India's Critical Minerals Strategy
Highlights key financial and policy aspects of India's focus on critical minerals, as outlined in the news.
- NCMM Budgetary Outlay
- ₹16,300 crore
Indicates the government's financial commitment to securing critical mineral supplies.
More Information
Background
Latest Developments
In recent years, the government has taken several steps to promote the exploration and development of critical minerals. The Geological Survey of India (GSI) has intensified its exploration activities, focusing on identifying new mineral deposits. The Ministry of Mines has also launched initiatives to encourage private sector participation in mineral exploration and production.
The government is actively pursuing international partnerships to secure access to critical minerals. India has signed agreements with countries like Australia and Argentina to collaborate on mineral exploration and development. These partnerships aim to diversify India's sources of critical minerals and reduce its dependence on a few suppliers.
Looking ahead, the government plans to further strengthen the regulatory framework for the mining sector and promote sustainable mining practices. The focus will be on attracting investment in mineral exploration and production, developing domestic processing capabilities, and ensuring a stable supply of critical minerals for India's growing economy.
Frequently Asked Questions
1. Why is India focusing on securing critical mineral supplies NOW, and not earlier?
Several factors have converged, making this a priority now: * Growing Demand: The renewable energy, electric vehicle, and electronics industries are booming, increasing demand for critical minerals. * Supply Chain Vulnerabilities: Many critical minerals are concentrated in a few countries, creating risks to India's industrial growth and energy security. * Geopolitical Disruptions: Global events highlight the need for technological sovereignty and secure supply chains.
2. What's the difference between the National Mineral Policy 2019 and the National Critical Mineral Mission (NCMM)? Are they the same thing?
No, they are not the same. The National Mineral Policy 2019 recognized the importance of securing access to critical minerals and promoting domestic production. The NCMM, launched later, is a specific mission with a budgetary outlay to implement the goals of the policy. Think of the policy as the 'what' and the mission as the 'how'.
3. If a Mains question asks me to 'critically examine' India's critical minerals strategy, what opposing viewpoints should I include?
Consider these points: * Over-Reliance on International Collaboration: While partnerships are essential, some argue India should focus more on domestic exploration and development to reduce dependence on other nations. * Environmental Concerns: Increased mining activities can have negative environmental impacts. The strategy needs to balance mineral security with sustainable practices. * Implementation Challenges: A well-funded mission is not enough. Effective implementation, coordination between different agencies, and addressing regulatory hurdles are crucial.
4. What is the significance of the ₹16,300 crore budgetary outlay for the NCMM? Is this a large or small amount, relatively speaking?
₹16,300 crore demonstrates the government's commitment to securing critical mineral supplies. Whether it's 'large' depends on the scale of projects undertaken. Consider: * Exploration Costs: Mineral exploration is expensive and time-consuming. * Technology Acquisition: Securing advanced mineral processing technologies requires significant investment. * Strategic Acquisitions: The fund might be used to acquire stakes in overseas mining projects.
5. How does India's focus on critical minerals relate to the Atmanirbhar Bharat (self-reliant India) initiative?
Securing access to critical minerals is crucial for Atmanirbhar Bharat. By reducing dependence on imports, India can: * Strengthen Domestic Manufacturing: Critical minerals are essential for various industries. * Enhance Energy Security: They are vital for renewable energy technologies. * Boost Technological Sovereignty: Controlling the supply chain of these minerals gives India greater control over its technological development.
6. What specific fact about critical minerals is MOST likely to be tested in the Prelims exam?
UPSC might ask about the number of critical minerals identified by India (30). The trap would be to confuse it with another number related to minerals or industrial policy. examTip: Remember '30 critical' – think of 'critical' situations at age 30.
Exam Tip
Remember '30 critical' – think of 'critical' situations at age 30.
7. How does China's dominance in mineral processing affect India's strategy, and what are India's options?
China controls 90% of global mineral processing capacity for several critical minerals, creating a significant vulnerability for India. India's options include: * Developing Domestic Processing Capacity: Investing in research and infrastructure to process minerals within India. * Strategic Alliances: Partnering with countries like Australia, the UK, and the US to access their processing technologies and expertise. * Diversifying Supply Sources: Reducing reliance on a single country for critical minerals.
8. In which GS paper (1, 2, or 3) is the 'Critical Minerals' topic most relevant, and from what angle?
This topic is most relevant to GS Paper 3 (Economy). The relevant angles are: * Industrial Policy: Critical minerals are essential inputs for various industries. * Infrastructure Development: Securing mineral supplies requires investment in infrastructure. * Science and Technology: Mineral exploration and processing involve advanced technologies.
9. How will the NCMM's 'AI-first approach' to mineral exploration actually work in practice?
An AI-first approach means using artificial intelligence to: * Analyze Geological Data: AI can identify patterns and anomalies in vast datasets to pinpoint potential mineral deposits. * Optimize Exploration Strategies: AI can help plan exploration activities more efficiently, reducing costs and time. * Predict Mineral Potential: AI models can predict the likelihood of finding specific minerals in different regions.
10. Lithium was classified as an 'atomic mineral' in 2023. What does this mean, and how does it affect private companies exploring for lithium?
Classifying lithium as an atomic mineral means its exploration and mining are subject to stricter government control, potentially limiting private sector participation. This is because atomic minerals are considered strategically important for national security. Private companies may need special licenses and face more regulations.
Practice Questions (MCQs)
1. Consider the following statements regarding the National Critical Mineral Mission (NCMM): 1. The NCMM has a budgetary outlay of ₹16,300 crore. 2. The mission focuses solely on domestic exploration of critical minerals. 3. The NCMM aims to reduce India's dependence on foreign sources for critical minerals. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: C
Statement 1 is CORRECT: The NCMM has a budgetary outlay of ₹16,300 crore, as explicitly stated in the summary. Statement 2 is INCORRECT: The mission focuses on both domestic exploration AND securing access to resources abroad through strategic partnerships. Statement 3 is CORRECT: A primary aim of the NCMM is to reduce India's dependence on foreign sources for critical minerals, enhancing self-reliance and energy security.
Source Articles
The shift of critical minerals to India’s strategic centre - The Hindu
NITI Aayog panel on critical minerals wants joint efforts, policy support for self-reliance - The Hindu
How is India’s hunt for critical minerals going? | Explained - The Hindu
A missing link in India’s mineral mission - The Hindu
What does the India-Brazil critical minerals MoU mean for the two countries? - The Hindu
About the Author
Anshul MannEconomics Enthusiast & Current Affairs Analyst
Anshul Mann writes about Economy at GKSolver, breaking down complex developments into clear, exam-relevant analysis.
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