Critical Minerals And Resource Security: India’s Next Policy Frontier

Policy Update
Chetan Gupta

Introduction

India in South Asia stands at a tipping point where untapped mineral potential intersects with high import dependence, and India is leading the charge to bridge this gap. China’s recent export restrictions on essential rare earth magnets have led to a supply chain bottleneck in different parts of the world. It was a wake-up call for India and the world about the urgency of securing critical minerals. The Government of India informed the Lok Sabha that these restrictions would impact Indian industries, including electric vehicle (EV) manufacturers.

Critical minerals are non-fuel minerals essential for a state’s economic development, national security and green transition. Their demand is skyrocketing in different sectors all across the world. India as the major actor in international politics, witnessing a robust transformation in the context of economic growth and technological advancement. Two-thirds of energy used in South Asia is imported and fossil fuels account for 80% of energy production. Indian policy frontiers are experiencing a heated shift to secure critical minerals amid major geopolitical shifts, technological demands, and the energy transition.

(Source: The Economist)

Critical Minerals in the International Landscape

The 20th-century conflicts revolved heavily around access to oil regarding natural resources; however, the 21st century is defined by the strategic scramble over critical minerals. The demand for minerals like lithium, cobalt, nickel, rare earth elements, copper, graphite, silicon, gallium, germanium, etc., has surged exponentially as they are directly essential for renewable energy, defence, electronics, transportation (EVs) and other sectors. For instance, energy transition is linked to minerals required in batteries, wind turbines, solar panels, and electric vehicles (EVs).

The demand for non-fuel minerals has accelerated the global race for leadership in the green energy transition. According to the WTO, the annual trade of energy-related critical minerals rose approximately 6 times in the last two decades. As per the International Energy Agency (IEA), the demand for lithium and nickel is expected to grow around 40 times between 2020 and 2040.

(Source: ResearchGate)

There is a scattered and uneven geographical distribution of critical mineral resources globally, with at least 55% of each identified critical mineral found in only 15 countries. Their lack of availability or concentration can lead to global supply chain vulnerabilities due to disruptions. This makes the critical minerals supply chains fragile. The recent developments, e.g., the COVID-19 crisis, the Russia-Ukraine war, China’s trade tensions, export restrictions, and even the scramble for mineral deals, have led to a global realisation about these critical vulnerabilities.

Critical minerals supply chains consist of upstream (mining, exploration), midstream (processing), and downstream (manufacturing) sectors. China has invested in critical minerals supply chains since the 1990s. Now, China maintains significant dominance in critical minerals supply chains. It has a stronghold in the midstream sector and in rare earth minerals. China controls 55% of global rare earth mining capacity, 85% of rare earth refining and the largest reserves of rare earth elements (REEs). India, on the other hand, has considerable potential upstream capacity in mining and exploration of several critical minerals, but its midstream processing and downstream manufacturing sectors remain underdeveloped, which leading to continued reliance on imports for refined and finished products.

(Source: TheHindu)

Globally, countries are laying out and reorienting their national plans to increase resource security and self-sufficiency, mitigate chokepoints of critical minerals supply chains, and even pursue resource mercantilism. It takes global attention to the ongoing new industrial revolution in the current century that is coloured in a green spirit, ultimately linked to global ecological challenges.

India’s Critical Minerals Landscape

As per the Ministry of Mines’ 2023 report, India is 100% import-dependent for 10 critical minerals. This dependence extends to other crucial minerals, which go up to 80% and 60% import reliance. This heavy reliance on imports places India in a precarious position because it is susceptible to global supply chain disruptions, price volatility, and geopolitical tensions.

Table: The net import reliance for critical minerals of India (Source: Ministry of Mines, GoI)

India has limited domestic reserves exploration, underdeveloped processing and refining capabilities. Major challenging fronts include reliance on foreign investments, resource extraction, bureaucratic delay and inefficient auctioning. India’s mineral vulnerabilities directly transformed into economic and geopolitical risks.

India Import Dependency of Key Minerals vs. Geopolitical Risk

India’s Policy Response and Resource Security

The policy frontiers have come up with a consolidated framework. The Government of India launched the National Critical Mineral Mission (NCMM) in January 2025 with an outlay of 34,300 crore over seven years from 2024-25 to 2030-31. It aims to secure supply chains by promoting exploration of essential minerals, reducing import dependence and ensuring self-reliance in India. A committee formed by the Ministry of Mines has identified 24 minerals. The NCMM aims to secure a sustainable supply of critical minerals vital for India by increasing domestic production. The government has set up Centres of Excellence (CoE), which focus on research and technology development in critical minerals.

Critical Minerals specified in Part D of First Schedule of the MMDR Act [24 minerals]

(Source: NCMM Document, Ministry of Mines)

Seven Components of the NCMM (Source: PIB, Ministry of Mines 2025)

Geological Survey of India (GSI) and Khanij Bidesh India Ltd. (KABIL) are two primary building blocks in India’s critical minerals policy landscape. GSI has been tasked to undertake 1200 exploration projects. It also fast-tracks offshore mining, encourages private exploration through new licenses, sets up Mineral Processing Parks and significantly coordinates with States for exploration and infrastructure. Further, GSI has undertaken 368 exploration projects for critical minerals over the past three years.

India is working on intersectional strategic points for critical minerals security by building international partnerships. Recently, India signed a Memorandum of Cooperation (MoC) in August 2025 during PM Modi’s visit to Japan. It focuses on building resilient and diversified supply chains for critical minerals. India has collaborated with the United States via initiatives on Critical and Emerging Technology (iCET). It has also signed an MoU with the US in October 2024 to build resilient supply chains. KABIL also signed an MoU with the Critical Mineral Office (CMO), Government of Australia, in 2022 to identify lithium and cobalt projects.

India had signed a $24 million lithium exploration pact with a state-owned enterprise of Argentina in 2024. KABIL also facilitates asset purchases from Bolivia and Chile. India and Chile are focusing on exploration, sustainable mining and processing. India is also a part of the Mineral Security Partnership (MSP), which works as a strategic multinational coalition for supply chains. There are active efforts to collaborate with Africa as well. This is a diversified attempt to reduce import dependence and ensure critical minerals security with low geopolitical risk.

Conclusion

Critical minerals global supply chain vulnerabilities have exposed the hurdles to energy transition, national security and effective economic development. India has the capabilities and determination to transform itself into a developed economy. The policy frontiers of India are now experiencing a robust shift to secure critical minerals security, as there is a profound realisation of India’s strong positioning in international affairs.

Way Forward

Multi-stakeholder collaboration brings together governments, the private sector, and researchers to coordinate supply chain building efforts. There are proactive steps like investment in domestic exploration, data sharing and broad auctioning to uncover mineral reserves. Policy planning and implementation are pushing to accelerate the national stockpile, reserves to buffer against future supply shocks and strengthening international cooperation with developed and developing nations.

Critical minerals policy has integration points with broader economic, energy and foreign policy objectives. National policy initiatives like Atmanirbhar Bharat, clean energy transition (net-zero emissions by 2070), Make in India (advanced manufacturing), and Viksit Bharat 2047 are initiatives to position India as a credible and responsible player in the global resource landscape. It consolidates India’s strategic autonomy and global stature. India is the largest South Asian country and is ambitious to become a developed economy. Resource security will play a significant role in the context of geopolitical factors, national security and economic development all across the world.

References

Ministry of Mines. (2025). National Critical Mineral Mission Document. Retrieved from https://mines.gov.in/admin/storage/ckeditor/24_pages__desktop_1752835254.pdf
Ministry of Mines. (2025). Notification: National Critical Mineral Mission. Retrieved from http://mines.gov.in/admin/storage/ckeditor/NCMM_Notification_(1)_1751518157.pdf

Ministry of Mines. (2023, June). Report of the Committee on Identification of Critical Minerals. Retrieved from https://mines.gov.in/admin/download/649d4212cceb01688027666.pdf
Press Information Bureau. (2025, April 9). National Critical Mineral Mission Powering India’s Clean Energy Future. Retrieved from https://www.pib.gov.in/PressReleasePage.aspx?PRID=2120525
Press Information Bureau. (2025, September 3). India’s Critical Minerals Strategy: Strengthening Global Supply Chains. Retrieved from https://www.pib.gov.in/PressReleasePage.aspx?PRID=2151287
ResearchGate. (n.d.). Production concentration of critical mineral materials (Map). Retrieved from https://www.researchgate.net/figure/Map-of-the-location-of-critical-mineral-materials_fig1_361291184
The Economic Times. (2025, March 9). China’s rare earth export curbs strain India’s supply chains; bilateral deals signed to secure critical minerals. Retrieved from https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/chinas-rare-earth-export-curbs-strain-indias-supply-chains-bilateral-deals-signed-to-secure-critical-minerals/articleshow/123393957.cms
International Energy Agency (IEA). (2025). Global Critical Minerals Outlook 2025. Retrieved from https://www.iea.org/reports/global-critical-minerals-outlook-2025
World Bank. (2025, February 20). South Asia: Navigating Green Energy Transitions Together. Retrieved from https://blogs.worldbank.org/en/endpovertyinsouthasia/south-asia-navigating-green-energy-transitions-together
The Economist. (2025, February 26). The skyrocketing demand for minerals will require new technologies. Retrieved from https://www.economist.com/science-and-technology/2025/02/26/the-skyrocketing-demand-for-minerals-will-require-new-technologies
World Trade Organization (WTO). (2024, January 10). Trade in Critical Minerals: Data Blog. Retrieved from https://www.wto.org/english/blogs_e/data_blog_e/blog_dta_10jan24_e.htm
Observer Research Foundation (ORF). (2025). Securing global supply chains for critical minerals. Retrieved from https://www.orfonline.org/expert-speak/securing-global-supply-chains-for-critical-minerals#_edn1
The Hindu. (2024, December 11). India’s reliance on China for critical minerals explained. Retrieved from https://www.thehindu.com/business/Industry/indias-reliance-on-china-for-critical-minerals-explained/article69020390.ece
Centre for Social and Economic Progress (CSEP). (2024). Critical mineral supply chains: Challenges for India (Working Paper). Retrieved from https://csep.org/working-paper/critical-mineral-supply-chains-challenges-for-india/
Centre for Social and Economic Progress (CSEP). (2025). Beyond self-reliance: India’s international partnerships on critical minerals. Retrieved from https://csep.org/blog/beyond-self-reliance-indias-international-partnerships-on-critical-minerals

Council on Foreign Relations. (2025, June 2). The Geopolitics of Critical Minerals: Risks, Resilience, and Resource Control [Event]. Retrieved from https://www.cfr.org/event/geopolitics-critical-minerals-risks-resilience-and-resource-control

About the contributor: Chetan Gupta is a Research Intern at Impact and Policy Research Institute (IMPRI). He is currently pursuing his MA in International Relations from the Department of International Relations, South Asian University (established by SAARC nations), Delhi. His research areas are International Relations and Public Policy.

Acknowledgement: The author sincerely thanks Ms. Aasthaba Jadeja and the IMPRI team for their valuable support.