- India Joins MSP Finance Network:Â
- India has joined the US-led Minerals Security Partnership (MSP) Finance Network to ensure sustainable supply chains for critical minerals, as part of efforts to diversify resources and reduce dependence on China.
- MSP Finance Network Goals:
- Â MSP Finance Network, involving 14 countries and institutions like DFC and JICA, aims to fund global projects for critical minerals by promoting cooperation and private sector investment across production, processing, and recycling.
- Importance of Critical Minerals:Â
- Critical minerals like lithium, cobalt, and rare earth elements are vital for technologies in telecommunications, renewable energy, and defense. These minerals are scarce and face supply chain risks due to limited global production and geopolitical tensions.
- Challenges for India:
-  India’s limited domestic reserves of critical minerals lead to heavy reliance on imports. Issues such as geopolitical risks, global competition, inadequate recycling infrastructure, and environmental concerns hinder securing these resources.
- Indian Initiatives and Future Steps:
- Â India is addressing these challenges through policies like the Mines and Minerals (Development and Regulation) Amendment Act, international partnerships, recycling initiatives, and proposals to enhance domestic processing and establish a Centre of Excellence for critical minerals.
