The Critical Minerals List released by the Government of India holds immense significance for the country's industrial landscape. This list comprises 30 essential minerals crucial for various sectors, including defence, agriculture, energy, pharmaceuticals, and telecom. By prioritizing the exploration and mining of these minerals, India aims to enhance its self-reliance and security regarding mineral resources.
While India possesses numerous minerals, it remains largely dependent on imports for most of the critical minerals. Exceptions include copper, gallium, graphite, cadmium, phosphorus, potash, and titanium. Currently, only about 10-20 percent of India's actual potential concerning critical minerals has been explored. Notably, the Geological Survey of India discovered a significant reserve of 5.9 million tonnes of lithium in Jammu & Kashmir's Reasi district in 2023, with additional findings in Rajasthan.
The government plays a pivotal role in regulating the exploration and mining of these critical minerals. A recent amendment to the Mines and Minerals (Development & Regulation) Act of 1957, enacted in July 2023, allows private players to mine lithium and five other critical minerals. Previously, only government agencies were permitted to engage in exploration and mining. This amendment has removed these six minerals from the country's atomic minerals list.
Allowing private players to mine critical minerals presents numerous benefits. This initiative fosters greater capital investment and encourages the adoption of new technologies in exploration and mining processes. Furthermore, it strengthens public-private partnerships, ultimately promoting growth in the mining sector. By reducing dependence on imports, India aims to establish itself as a global manufacturing hub for batteries and renewable energy technologies.
The global demand for critical minerals, particularly lithium, has soared due to their strategic use in manufacturing batteries for electric vehicles. As countries pivot towards green energy and e-mobility, the demand for these minerals has surged significantly.
The Critical Minerals List acknowledges the essential role minerals play in transitioning to a sustainable economy. By focusing on minerals needed for renewable energy technologies, such as lithium for batteries, India is taking significant steps towards achieving its net-zero targets and promoting environmental sustainability.
The Minerals Security Partnership (MSP) is an alliance of 14 developed nations, led by the United States, aimed at securing critical mineral supply chains. Established in June 2022, this partnership addresses the growing importance of critical minerals across various industries, ensuring their availability and sustainability.
India's inclusion in the MSP is particularly noteworthy, as it is the only developing nation to join this group. This membership reflects India's rising stature in the global mineral sector. By joining the MSP, India gains opportunities to collaborate with developed countries, accessing expertise, technologies, and resources essential for the sustainable development of its mineral resources.
Membership in the Minerals Security Partnership offers India numerous advantages. It enhances the country's capacity to secure critical mineral supply chains while facilitating knowledge sharing and technical cooperation with other member states. Furthermore, joining the MSP elevates India's international standing in the mineral sector, paving the way for more strategic partnerships and investments.
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