The shift of critical minerals to India’s strategic centre, Pg10

Key Highlights:

• The Indian government has prioritized critical minerals as a core component of its industrial, energy, and geopolitical strategy, as highlighted in the latest Union Budget.
• India has identified 30 critical minerals and has eased mineral exploration for junior miners while also rationalizing the royalty rates.
• The government launched the National Critical Mineral Mission (NCMM) in January 2025 with a budgetary outlay of ₹16,300 crore.
• Budget 2026 focuses on the implementation of policies related to critical minerals, including the removal of import duties on capital goods used in processing.

Detailed Insights:

• The shift towards prioritizing critical minerals signifies a move from policy conceptualization to execution, focusing on building expertise at scale and speed.
• Despite having the capabilities to process minerals like copper, graphite, and rare earth oxides to high purity levels, India needs to upgrade technology and expand capacity to meet the demands of clean tech and defense.
• To boost the critical minerals sector, India needs to create demand avenues for processed minerals by supporting domestic manufacturing of batteries, solar modules, wind turbines, and electric vehicles.
• An AI-first approach to mineral exploration, leveraging the IndiaAI Mission, the National Geospatial Policy, and Mission Anveshan, is crucial for de-risking exploration and improving site discoveries.
• India should leverage geopolitical disruptions to build technological sovereignty by establishing rare earth corridors across coastal states and reducing import duties on monazite sands.
• International partnerships with countries like Australia, the UK, the U.S, European countries, and Japan are essential for technology transfer and establishing facilities in India to service global markets.
• Inter-ministerial coordination, proactive state leadership, and global partnerships are vital for India's leadership in the critical minerals sector.

Key Concepts Involved:

• Critical Minerals: Minerals essential for economic growth and national security, with supply chains vulnerable to disruption.
• National Critical Mineral Mission (NCMM): A government initiative to secure the supply of critical minerals through exploration, mining, and processing.
• Technological Sovereignty: A nation's ability to control its technological development and deployment, reducing dependence on other countries.