Introduction:
India’s rapid industrialization and technological progress have fueled a heightened demand for critical minerals, playing a pivotal role in diverse industries. However, the nation’s substantial reliance on imported critical minerals raises concerns about vulnerabilities in the supply chain and potential threats to economic stability.
Body:
Current status of India’s domestic production and import dependence on critical minerals:
Domestic Production:
Despite abundant reserves of crucial minerals such as lithium, cobalt, rare earth elements, and tungsten, India faces challenges in local production:
- Outdated Mining Techniques: Traditional methods hinder efficiency and safety, impeding mineral output, as seen in the coal mining sector in Jharkhand.
- Infrastructure Constraints: Limited infrastructure obstructs growth, creating bottlenecks in exploration and extraction, particularly in states like Jharkhand for minerals like mica and bauxite.
- Bureaucratic Hurdles: Complex processes and delays discourage investments, obstructing mineral production, with zinc and lead deposits in states like Rajasthan facing clearance issues.
Import Dependence:
India’s heavy reliance on imported critical minerals is a significant concern:
- Supply Chain Vulnerability: Excessive import dependence exposes India to disruptions from geopolitical tensions or unforeseen events, with more than 70% of lithium-ion battery materials imported in 2022.
- Price Fluctuations: Relying on international markets subjects India to price volatility, affecting industries dependent on these minerals, as seen in the 35% surge in copper imports from 2021 to 2022.
- Strategic Security: Importing critical minerals from a few sources jeopardizes strategic security, particularly with a substantial reliance on China for key minerals amid geopolitical tensions.
Measures to enhance self-sufficiency in these resources:
- National Mineral Policy (NMP) 2019: The NMP 2019 aims to reduce import dependence by promoting domestic exploration and production of critical minerals, targeting a 200% increase in mineral production over seven years.
- Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY): PMKKKY utilizes funds from mining companies for local area development, collecting over INR 4,300 crore until 2021.
- Mines & Minerals Amendment Act, 2021: This act seeks to bring transparency and continuity to mining operations, with 40 mineral blocks auctioned for exploration.
- Atmanirbhar Bharat Abhiyan: This initiative aims to boost domestic production through policy support and ease of doing business, with a substantial economic stimulus package announced in May 2022.
- Skill India Mission: The mission focuses on skilling the mining workforce to enhance productivity and safety, with over 8 crore people trained under Skill India as of 2022.
- E-Waste Management Rules, 2016: Encouraging the recycling of critical minerals from electronic waste, considering India generated over 1.71 million metrics of e-waste in 2013, highlighting a potential resource pool.
Conclusion:
India’s reliance on critical mineral imports poses economic and strategic risks. Strategic partnerships, research, infrastructure upgrades, regulatory reforms, and recycling initiatives can collectively enhance self-sufficiency, fostering growth, resilience, and global competitiveness.
In case you still have your doubts, contact us on 9811333901.
For UPSC Prelims Resources, Click here
For Daily Updates and Study Material:
Join our Telegram Channel – Edukemy for IAS
- 1. Learn through Videos – here
- 2. Be Exam Ready by Practicing Daily MCQs – here
- 3. Daily Newsletter – Get all your Current Affairs Covered – here
- 4. Mains Answer Writing Practice – here
