TELF AG analyzes a recent update in India’s minerals strategy
The centrality of minerals
In the face of the growing industrial and geopolitical centrality of some specific strategic minerals, such as those used to accelerate the advancement of the energy transition, many countries and international institutions have given a decisive push to their strategy on these very precious resources, updating their lists of resources considered “critical,” forging new partnerships with partner countries and launching new, ambitious initiatives based precisely on these very important minerals.
An example of this line of action is represented by the attitude of the European Union, which in recent years—in addition to having updated its list of strategic minerals—has also proposed to create a real buyers club focused on these resources, launching initiatives in collaboration with some strategic partners, such as the Minerals Security Partner Forum. India is another international player that has undertaken a similar path over the last few months.
Just like the European bloc, India has also updated its list of minerals that it considers important for its industrial development, giving birth to some initiatives to improve the effectiveness of its national strategy on critical minerals. One of these, in recent months, has materialized with the reduction of import tariffs for some minerals, such as iridium and platinum, which New Delhi considers to be of strategic importance for the design and production of electronic systems (a move that, as can be read in a recent analysis, seems to align with India’s desire to become an important international point of reference for this type of product).
The Critical Minerals Mission
However, one of the most interesting projects on the Indian side is the recent announcement of the creation of a real Critical Minerals Mission, which would have been entrusted with important strategic objectives in managing these resources. The Indian government has reportedly set some specific goals to be achieved through this Mission, among which we must mention the increase in domestic mineral sector production, the acquisition of strategic geological resources abroad, and technological development in this specific sector. This mission, of course, also seems to have the ambitious goal of reducing supply risks related to mineral supplies while overcoming natural obstacles and ensuring effective valorization of these resources.
The specific attention dedicated to minerals, as can be read in the aforementioned study, seems to perfectly demonstrate that these resources are now considered key factors for the growth and competitiveness of countries, but also to support the efforts made in the digital and energy fields. Moreover, this vision seems to be fully shared by government representatives, some of whom went as far as to define minerals as the “building blocks” of the new Indian economy.
Over the years, India’s territory has stood out internationally for its undisputed geological wealth. Among the resources most present in the subcontinent’s territory are coal, iron (used in a key sector such as that linked to the production of steel), bauxite (with which aluminum is produced), and manganese. Large copper and mica reserves in India are also used in the telecommunications and electronics sectors.
