Critical Minerals Initiative and India's Strategic Engagement
The Quad countries—India, Japan, Australia, and the US—have launched the Critical Minerals Initiative to secure and diversify supply chains. This forms a crucial part of India’s mineral diplomacy, especially given the global crisis in rare earth magnets following China's export controls.
Importance of Critical Minerals
- Essential for green technologies such as:
- Electric vehicles
- Solar panels
- Batteries
- Semiconductors
- India's green industries face risks due to dependence on China.
India's Current Mineral Strategy
- Signed bilateral partnerships with resource-rich countries like Argentina and Zambia.
- Indian firms face challenges due to:
- Lack of advanced technology
- Insufficient financial capital
- Political instability in foreign markets
- Engagements with the UAE, US, and UK focus on joint ventures for mineral processing and recycling.
Advantages of Minilateral Groupings
- Enable joint technical, financial, and diplomatic cooperation across the value chain.
- Overcome financial constraints by accessing:
- Broader capital pools
- Blended finance mechanisms
- Export credit agencies
- Leverage advanced technologies from countries like Australia and Japan.
Strategic Considerations for India
- Need to balance international partnerships with national interests.
- Focus on domestic capacity building and scientific innovation.
- Encourage investment in R&D and academic exchanges.
Challenges in Global Trade Dynamics
- Potential risks from protectionist trade policies.
- Need for robust protection mechanisms in global resource-sharing agreements.
Aligning with Global Standards
- Adoption of global ESG standards as part of “Make in India” and “Atmanirbhar Bharat”.
- Influence on ESG discourse from a Global South perspective.
India's Role in Global Minerals Market
- Leveraging historical ties and influence in Africa and Southeast Asia.
- Positioning as a bridge between the Global North and South for mutual benefits.
In conclusion, India's strategic engagement in mineral clubs must align with its development ethos to ensure equitable global value chains while minimizing dependency on major powers.