Critical Minerals Move to the Centre of India's Strategic and Industrial Policy

Critical minerals — resources such as lithium, cobalt and rare earths that are essential for clean energy, electronics and defence — have moved from the margins to the centre of India's economic strategy. As recently as August 2023, several of these, including lithium, were classified as atomic minerals, which effectively barred private exploration and mining. Recent Budget signals show a clear shift towards treating critical minerals as a core pillar of India's industrial, energy and geopolitical planning.

India now maintains a list of 30 critical minerals, has eased exploration rules for small (junior) miners, and has rationalised royalty rates. In January 2025 the government launched the National Critical Mineral Mission (NCMM) with an outlay of Rs 16,300 crore. This places India among a small group of countries with a comprehensive critical-minerals policy framework.

The hard part is not just mining but processing. China controls up to 90 per cent of the world's processing capacity for several critical minerals, giving it enormous leverage. Mining itself can take years or even decades to develop, so processing capacity and refining are major bottlenecks for any country seeking mineral security.

India already produces high-purity copper, graphite, rare earth oxides, tin and titanium, often above 99.9 per cent purity, according to the Council on Energy, Environment and Water (CEEW). But current output is geared to conventional uses and small volumes. Meeting the needs of clean technology and defence will require deeper refining and larger capacity. The latest Budget removes import duties on capital goods used in processing critical minerals, and India can draw on skills from its chemicals, pharmaceuticals and textiles industries to scale up.

For exams, remember the National Critical Mineral Mission (Rs 16,300 crore, launched January 2025), the list of 30 critical minerals, the de-classification of lithium from atomic minerals, China's roughly 90 per cent grip on processing, and the role of CEEW. The theme links the economy, energy security and strategic autonomy.