The global economy of the twenty-first century is built on critical minerals, which fuel everything from advanced electronics and digital infrastructure to electric mobility, renewable energy systems, and defence technology. Securing steady and varied access to these minerals is now crucial for India’s rapidly expanding economy, which is committed to profound decarbonization, technological competitiveness, and self-reliance. It is essential to global standing, economic resilience, and national security. The National Critical Mineral Mission (NCMM), established in 2025 with the support of a ₹34,000 crore sovereign fund under the modified MMDR Act 2025, represents India’s most significant move to date in creating a holistic ecosystem around critical minerals.
Critical Minerals: Why India Needs Them?#
Clean energy technologies, including solar panels, electric vehicle batteries, wind turbines, semiconductors, and advanced storage systems, rely on critical minerals such as lithium, cobalt, nickel, rare earth elements (REEs), gallium, indium, and graphite. The availability of these minerals is crucial to India’s climate goals, which include a 45% reduction in emissions intensity by 2030, a 50% non-fossil power capacity by 2030, and net-zero emissions by 2070.
For instance, silicon, gallium, tellurium, and indium are needed in the production of solar photovoltaics. Neodymium and dysprosium are essential for the production of permanent magnets used in wind turbines. Lithium, cobalt, and nickel are essential for electric cars and batteries. Rare earths and speciality metals are used throughout the whole production process of high-tech devices. The demand for essential minerals is predicted to increase many times faster than the global average as India establishes a local battery manufacturing and semiconductor ecosystem, expands to 500 GW of renewable energy capacity, and deploys millions of EVs. However, India now imports nearly all of these minerals, making it vulnerable to supply chain disruptions, market volatility, and geopolitical risks that the globe experienced during the pandemic and the Russia-Ukraine conflict.
NCMM: A Strategic Response to Global Competition#
By developing a comprehensive strategy that encompasses discovery, acquisition, processing, and recycling, the National Critical Mineral Mission seeks to mitigate these risks.
Important characteristics consist of:
- 1,200 domestic exploration projects from 2024–2025 to 2030–2031.
- PSUs targeted 26 foreign assets, whereas 24 assets were made available to private companies.
- creation of strategic stocks, recycling incentives, and mineral processing parks.
- Creating Centres of Excellence to promote talent development, innovation, and R&D, and a new Exploration Licence (EL) to allow private involvement in the industry.
The successful models of Canada and Australia, where robust public-private partnerships, open regulations, and pre-competitive geological databases have produced globally competitive minerals industries, are reflected in this integrated approach.
Domestic Exploration: Strengthening Geological Foundations#
With barely 10% of its geological surface surveyed at high resolution, India remains one of the least studied global economies, despite its considerable resource potential. The NCMM prioritises enhanced exploration using remote sensing, isotopic, geophysical, and geochemical instruments. High-probability mineral belts can be found using national-scale mineral fertility maps. NMET financing for expedited exploration by Notified Private Exploration Agencies (NPEAs). With 195 projects in 2024–2025 alone, GSI’s increased efforts signal a move toward data-driven, scientific research. Findings, such as Rajasthan’s REE-rich deposits, demonstrate how enhanced geological intelligence can change India’s strategic capabilities.
Global Acquisitions: Reducing Dependence and Building Leverage#
China, the EU, the US, and Japan have already established long-term investments in mineral-rich nations, and India is entering a very competitive global market. India’s foreign policy includes purchases made by PSUs through KABIL, such as a 15,703-hectare lithium exploration block in Argentina, as well as collaborations on supply chains for lithium, cobalt, nickel, and rare earth elements with Australia, Latin America, and Africa. An increase in operational effectiveness and commercial agility through the use of diaspora-led acquisition methods. A proposed Critical Minerals Overseas Acquisition Authority (CMOAA) that combines private sector flexibility with sovereign support could be a game-changer, enabling India to leverage diaspora expertise, streamline bureaucratic processes, and engage in strategic negotiations across resource-rich regions.
Processing, Refining, and METS: Moving Up the Value Chain#
China controls around 70% of the world’s processing and refining capacity; thus, India’s vulnerability goes beyond shortages of raw materials. Without domestic processing skills, offshore purchases will only give partial security. The MMDR Act of 2025 and NCMM prioritise increased capacity downstream via Mineral Processing Parks. R&D for battery recycling, rare earth separation, and green metallurgy. Bolstering organisations such as CSIR-NML, CSIR-IMMT, and IREL. Encouraging urban mining, which can turn India’s electronic waste into a supply of indigenous minerals. Creating a globally competitive Mining Equipment, Technology & Services (METS) ecosystem has perhaps the most revolutionary potential. India can transform mining innovation into a significant export sector, generating highly skilled jobs and reducing its dependency on foreign technologies, by drawing inspiration from Australia and Canada.
Regulatory and Financial Reforms: Attracting Investment#
Although the MMDR Act’s introduction of EL and CL is a positive start, India still needs to do more to create a welcoming exploration environment. Important changes are required, such as marketable exploration rights and predictable tenure security. streamlined permissions for forests and the environment. A platform for the transparent trading of domestic vital minerals. Conformity to global reporting standards via the Indian Mineral Industry Code (IMIC). Establishing requirements for junior exploration firms to list on the NSE and BSE. These actions can increase investor trust, release domestic capital, and turn exploration into a market-driven endeavour.
Conclusion: The Road Ahead for India’s Mineral Sovereignty#
Critical minerals are now essential to industrial policy, national security, and global competitiveness; they are no longer a niche market. Strengthening geological exploration, securing foreign resources, investing in processing and R&D, and aligning regulatory frameworks with international best practices are all examples of India’s ambitious and proactive National Critical Mineral Mission. However, execution, institutional coordination, and the capacity to combine public and private resources will be necessary for success. With proper implementation, India can move from mineral fragility to mineral leadership, cementing its place in the global technological economy, fuelling the country’s shift to renewable energy, and creating robust supply chains.
References:#
1. ORF Expert Speak Article
Shekhar, N. “India’s Critical Minerals Mission: From Ambition to Action.” Observer Research Foundation, April 25, 2024. Accessed November 24, 2025.
https://www.orfonline.org/expert-speak/india-s-critical-minerals-mission-from-ambition-to-action
2. PIB Press Release
Press Information Bureau. “Union Cabinet Approves the National Geoscience Data Repository and National Geoscience Data Portal.” Government of India, Ministry of Mines, July 5, 2023. Accessed November 24, 2025.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2120525
3. Ministry of Mines Document (Critical Minerals List Report 2023)
Ministry of Mines, Government of India. Report of the Committee on Identification of Critical Minerals. New Delhi: Ministry of Mines, 2023. Accessed November 24, 2025.
https://mines.gov.in/admin/download/649d4212cceb01688027666.pdf.
Clear Cut Livelihood Desk
New Delhi, UPDATED: Nov 24, 2025 04:41 IST
Written By: Nidhi Chandrikapure
