Overview of India's Mineral Industry

India is a significant player in the global mineral production landscape, producing a diverse range of minerals such as coal, iron ore, bauxite, zinc, lead, silver, copper, and increasingly crucial minerals like lithium, cobalt, nickel, and rare earth elements.

Economic Importance

• The mineral industry is vital for various sectors including construction, energy, manufacturing, and infrastructure.
• Critical minerals are essential for renewable energy technologies, electric vehicles (EVs), electronics, and batteries.
• The mining and exploration sector contributes 2-3% to India's GDP and provides millions of jobs.

Policy and Regulatory Framework

The Government of India (GoI) has implemented several policies to enhance the mining sector:

• Policy for recovery of critical minerals from mining byproducts.
• Removal of import duty on 12 critical minerals, cobalt powder, lithium-ion battery scrap, and lead.
• Introduction of a state mining index and customs duty waivers for additional critical minerals.

National Critical Mineral Mission (NCMM)

The Union Cabinet approved the launch of NCMM, with funding of ₹16,300 crore by the government and ₹18,000 crore by public sector units.

• NCMM covers the entire value chain from exploration to recovery of minerals.
• Plans for intensified exploration of critical minerals, regulatory improvements, and financial incentives.

Challenges and Recommendations

• To avoid reliance on imports, the GoI should introduce quality standards for critical minerals.
• Global practices of dumping low-quality scrap should be addressed.

Budget Allocations and Reforms

Budget 2025 has allocated funds to boost exploration and surveying of mineral deposits, with specific focus on critical minerals.

• Introduction of the second phase of the PLI scheme for the specialty steel sector.
• Important reforms in customs tariff, voluntary customs duty revision, and import-export facilitation.
• Funding for National Mineral Exploration Trust (NMET) for resource mapping and technology development.

Technological and Environmental Initiatives

• Tax incentives for adopting green technologies in mining.
• Water conservation techniques and reduction of carbon emissions in mining.
• Creation of a national mineral critical supply chain for domestic sources.
• Promotion of Public-Private Partnerships (PPPs) to accelerate extraction and enhance efficiency.

Skill Development and Sustainable Practices

There is a need for skilled labor, driven by demand for critical minerals:

• Skill development programs focused on green mining technologies and sustainable practices.

Conclusion

Increasing self-sufficiency in critical minerals is vital for India's energy security and its position in the global green economy. With strategic policies aimed at boosting domestic production, securing supply chains, and ensuring sustainable practices, India could emerge as a global leader in the critical minerals sector.