Why in the News?

Reliance on critical mineral imports, especially from China, poses strategic concerns. To address this, the Indian government is advancing its Mineral Diplomacy to enhance security and reduce strategic vulnerabilities.

What are the strategic objectives of India’s Critical Mineral Mission 2024?

India’s Critical Mineral Mission aims to secure a stable supply of essential minerals for its economic and technological growth. The strategic objectives include:

• Reducing Import Dependency: By decreasing reliance on imports, particularly from China, India seeks to enhance its mineral security and mitigate economic risks associated with geopolitical tensions.
• Enhancing Domestic Production: The mission focuses on boosting domestic exploration and production capabilities for critical minerals, thereby fostering self-sufficiency.
• Facilitating Recycling and Sustainable Practices: Emphasis is placed on recycling critical minerals to ensure a sustainable supply chain while addressing environmental concerns.

How is India leveraging international partnerships to enhance its mineral supply chains?

India is actively engaging in international partnerships to enhance its mineral supply chains through several strategic initiatives:

• Bilateral Agreements: India has established partnerships with resource-rich countries like Australia, Argentina, and Kazakhstan to secure supplies of lithium and cobalt. For instance, KABIL signed a memorandum of understanding with Australia for lithium and cobalt projects.
• Joint Ventures: The formation of joint ventures, such as IREUK Titanium Limited with Kazakhstan, aims to develop production capabilities within India, thus integrating into the global supply chain.
• Multilateral Engagements: India is participating in multilateral initiatives like the Quad and the G-7 to align with global best practices in mineral security and facilitate knowledge sharing.

What challenges does India face in its mineral diplomacy efforts?

Despite the positive outcomes of India’s mineral diplomacy, several challenges hinder its effectiveness:

• Lack of Private Sector Participation: The absence of a clear roadmap for private sector involvement in the critical minerals supply chain limits India’s ability to leverage domestic capabilities fully.
• Weak Diplomatic Capacity: Insufficient diplomatic resources and expertise in mineral diplomacy pose challenges in forming sustainable international partnerships.
• Need for Comprehensive Strategy: A cohesive strategy that integrates private sector roles and addresses supply chain vulnerabilities is essential for enhancing India’s mineral security efforts. The current lack of such a strategy hampers effective engagement with international partners.

Way forward: 

• Develop a Comprehensive Critical Minerals Policy: Formulate a cohesive strategy integrating private sector participation, incentivizing domestic exploration, and addressing supply chain vulnerabilities.
• Strengthen Mineral Diplomacy Capacity: Expand diplomatic resources and expertise in mineral partnerships, focusing on resource-rich nations and multilateral platforms. Establish specialized teams to negotiate sustainable agreements, ensuring secure and diversified supply chains.

Mains PYQ:

Q A number of outside powers have entrenched themselves in Central Asia, which is a zone of interest to India. Discuss the implications, in this context, of India’s joining the Ashgabat Agreement, 2018. (UPSC IAS/2018)

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now