Background and Policy Context
- India recalibrated global mineral strategy following the National Critical Mineral Mission, 2025 launch.
- China’s tightened rare earth export controls intensified India’s focus on supply chain security.
- The approach integrates international partnerships with domestic exploration and industrial policy objectives.
Concept and Scope of Minerals Diplomacy
- Minerals diplomacy uses international partnerships and multilateral mineral clubs to secure reliable critical supplies.
- It coordinates upstream mining, midstream processing, and downstream manufacturing for national economic security.
- The strategy links resource access with long-term industrial growth and technological resilience.
Status of Mineral Resources
- Domestic refined copper output increased 43.5 percent in early FY26, indicating smelting capacity recovery.
- India remains 100 percent import-dependent for 10 critical minerals, including Lithium and Cobalt.
- India is the second-largest aluminium producer and third-largest iron ore producer globally in 2025.
- The Geological Survey of India completed over 368 exploration projects in three years.
- A ₹34,300 crore sovereign fund supports NCMM implementation through 2031.
Drivers of India’s Mineral Diplomacy
- The 500 gigawatt non-fossil target requires large lithium supplies for electric mobility systems.
- The India–Australia Partnership, 2022 identified five lithium projects supporting domestic battery manufacturing.
- The India–Japan Memorandum, 2025 promotes joint extraction in third countries for China-plus-one diversification.
- The TRUST Initiative with the United States advances rare-earth processing and battery recycling technologies.
- A ₹200 crore KABIL agreement with Argentina seeks stable pricing for domestic battery producers.
- Engagements with Namibia emphasise local value creation and Global South partnership models.
Institutional and Policy Initiatives
- NCMM 2025 established a seven-year framework for end-to-end critical mineral supply security.
- The Mines and Minerals Amendment Act, 2025 centralised auctions for 24 strategic minerals.
- KABIL pursues overseas mineral assets in Chile and Argentina for long-term resource access.
- India joined the Mineral Security Partnership to coordinate sustainable supply chains with advanced economies.
- A ₹1,500 crore recycling incentive scheme promotes circular economy models through e-waste recovery.
Challenges and Way Forward
- Weak midstream refining capacity creates processing choke points despite overseas mining access.
- Global competition and resource nationalism complicate asset acquisition and long-term partnerships.
- Long project gestation and evolving ESG compliance standards delay commercial production.
- Proposals include integrated value-chain mapping, sovereign risk support, and mineral diplomacy divisions.
Conclusion
- India’s mineral diplomacy combines domestic exploration and strategic global clustering to secure long-term industrial foundations.
Q- Identify key institutional and geopolitical challenges in securing long-term critical mineral supplies for India. (250 words)