Roadmap for Answer Writing 1. Introduction Define critical minerals and their importance in the context of India’s economy and security. Briefly mention the global significance of these minerals. 2. Challenges in Securing Critical Minerals Overdependence on Imports: Highlight the reliance on foreign sources, especially from ...
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Model Answer Introduction Critical minerals, such as lithium, cobalt, and rare earth elements, are vital for India's economic growth, technological advancement, and national security. As the country aims for a transition to a green economy and enhanced digital capabilities, securing these minerals hRead more
Model Answer
Introduction
Critical minerals, such as lithium, cobalt, and rare earth elements, are vital for India’s economic growth, technological advancement, and national security. As the country aims for a transition to a green economy and enhanced digital capabilities, securing these minerals has become increasingly important.
Challenges in Securing Critical Minerals
India faces several challenges in securing critical minerals. Firstly, there is a significant overdependence on imports, with around 60% of rare earth elements sourced from China, making India vulnerable to geopolitical tensions. Secondly, limited domestic exploration hampers progress; only 48% of mineral blocks have been auctioned, and many lack adequate geological data. Additionally, India has underdeveloped processing capacity, forcing it to rely on external entities for value-added mineral processing. The policy and regulatory gaps further complicate matters, as inconsistent policies discourage foreign investment and slow the execution of necessary reforms. Lastly, geopolitical risks from global competition for these minerals limit India’s access to essential resources.
Suggested Measures
To effectively secure its critical mineral supply chains, India should establish a centralized authority to oversee exploration, processing, and recycling. Creating strategic stockpiles of vital minerals can mitigate supply shocks and price volatility. Furthermore, the government should provide fiscal incentives such as subsidies and tax rebates to attract private investment in exploration and processing. Encouraging public-private partnerships would bring in advanced technologies and expertise, enhancing domestic capabilities. Strengthening global partnerships through alliances can secure diversified mineral supplies. Additionally, investing in recycling initiatives will help reduce dependence on virgin minerals. Infrastructure development in resource-rich regions is crucial for unlocking potential reserves, while skill development programs are necessary to create a qualified workforce for the mining sector.
Way Forward
In conclusion, critical minerals are essential for India’s sustainable economic growth and technological advancement. Addressing the challenges associated with securing these minerals through a comprehensive strategy will enhance national security and reduce import dependency, positioning India favorably in the global market.
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