Tapping minerals, pushing deep: Can India become a global leader in the critical minerals sector?
critical minerals such as lithium, cobalt, nickel and rare earth (RE) elements. Its mineral industry provides inputs for construction, energy, manufacturing and infrastructure, while critical minerals are needed for inputs for RE, EVs, electronics, batteries, etc. Keeping in mind current geopolitical factors like tariffs, India's mineral industry will play an increasingly important role in the country's economy.
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The mining and exploration sector contributes 2-3% to India's GDP, and millions of jobs, both directly in mining and indirectly in related industries. But challenges remain in exploration, regulations and environmental clearances. GoI's policy for recovery of critical minerals from tailings or byproducts of mining; removal of import duty on 12 critical minerals, cobalt powder, lithium-ion battery scrap, and lead; introduction of a state mining index; and customs duty waivers to include additional critical minerals, have helped.
Recently, the Union Cabinet approved launch of the National Critical Mineral Mission (NCMM), with an expenditure of ₹16,300 cr, and ₹18,000 cr by PSUs. NCMM will encompass the entire value chain, from exploration, mining and beneficiation, to processing and recovery. It plans to intensify exploration of critical minerals within the country and offshore, and to create a fast-track regulatory approval process for critical mineral mining projects, including offering financial incentives.
