India has taken a significant step toward enhancing its self-reliance in key mineral resources by launching the National Critical Minerals Mission (NCMM). Announced by Prime Minister Narendra Modi, the initiative is poised to reduce the country's dependence on imported minerals and strengthen domestic value chains, aligning closely with India's ambitious ‘Net Zero by 2070’ commitment.
The NCMM, backed by a funding allocation of Rs 16,300 crore and expected investments of Rs 18,000 crore from public sector undertakings (PSUs), encompasses all stages of the mineral value chain. These stages include exploration, mining, beneficiation, processing, and the recovery of minerals from end-of-life products. Prime Minister Modi remarked on X platform, "Union Minister Shri @kishanreddybjp elaborates on how the National Critical Minerals Mission aims to reduce import dependence, strengthen domestic value chains and support India’s ‘Net Zero by 2070’ goal." This reflects the government's commitment to securing India's future resource needs.
Union Minister for Coal and Mines, G Kishan Reddy, expressed confidence about the initiative, emphasizing how the announcement of the NCMM serves to bolster strategic industries such as clean energy, semiconductors, defence, and space. He noted, "This policy will strengthen our strategic industries, including clean energy, semiconductors, defence, and space." Reddy's statements point to the importance of this mission in promoting sustainable practices within India's growing economy.
One significant aspect of the NCMM is its focus on specific minerals deemed 'critical' for modern technology and clean energy solutions, which include lithium, cobalt, nickel, and rare earth elements. Currently, the extraction of these minerals is heavily dominated by countries like China, imposing risks on India's supply chain. The initiative aims to expedite exploration and establish India as part of the alternative supply chain, minimizing geopolitical vulnerabilities. Minister Reddy highlighted this necessity, stating, "The series of reforms will drive production and innovation at home and position India as a key player globally."
To fully capitalize on the potential of the NCMM, the Indian government is implementing several important reforms. An integral component of these reforms includes the introduction of policies concerning tailings, which aim to improve environmental management and increase domestic availability of these minerals. This initiative is expected to simplify regulatory approvals for mining projects—a move likely to attract more investments and make the mining process more efficient.
At the same time, the budget presented by Finance Minister Nirmala Sitharaman has introduced relief measures such as the elimination of import duties on metal scrap and lithium-ion battery (LIB) scraps, described by the Mines Ministry as "a game-changer." These measures are projected to bolster the domestic recycling industry, enhancing competitiveness and driving down production costs. It is anticipated this will also stimulate additional investments within the advanced recycling technologies sector.
Minister Reddy elaborated on the broader vision of these reforms, linking them to India's goal of achieving energy transition and demonstrating sustainability. The mining sector is seen as pivotal for securing the necessary minerals for this transition. Reddy affirmed, "These measures will significantly boost the mining sector's competitiveness as India positions itself within the global minerals marketplace."
Collaboration with countries rich in mineral resources, such as Australia—which holds considerable lithium reserves—represents another strategic approach taken by India. A government-to-government agreement has already been signed, aimed at facilitating co-investment opportunities and realizing the feasibility of projects. This proactive stance is integral to ensuring India develops its own resource capabilities without being overly reliant on imports.
Lastly, analysts highlight the importance of the National Critical Minerals Mission within the framework of India’s larger economic strategy, especially under the Atmanirbhar Bharat (self-reliant India) initiative. By empowering sectors reliant on these minerals, the government aims to create jobs, promote innovation, and contribute to overall sustainable development.
India's commitment to advancing its mining sector not only seeks to safeguard against external shocks but also aspires to place the country at the forefront of the global minerals market. The efforts made through the NCMM are indicative of India’s resolve to emerge as a significant player, securing both economic and environmental stability for future generations.