India’s growing demand for critical minerals is becoming a key factor in its pursuit of 50% decarbonisation by 2030 and its ambition for a Viksit Bharat by 2047. These minerals are essential for expanding clean energy technologies such as solar panels, wind turbines, electric vehicles, and energy storage systems.
A new paper by former Foreign Secretary Ranjan Mathai, titled “India’s Mineral Requirements in a World of Economic and Geopolitical Transition,” and published by the Centre for Social and Economic Progress, underscores the urgency of addressing India’s dependency on mineral imports. According to Mathai, sourcing more minerals domestically could save the country over US$100 billion annually in import costs.
The paper highlights that India’s mining sector remains underdeveloped, with “only 30% of India’s obvious geological potential properly explored.” Currently, mining contributes about 2% to the national Gross Domestic Product (GDP), compared to 7.5–12% in countries like Australia and South Africa, which share similar geological characteristics.
India is also highly dependent on imports for key minerals critical to renewable energy. The country relies on imports for 93–100% of its copper, nickel, lithium, and cobalt needs. A separate paper by the Institute for Energy Economics and Financial Analysis (IEEFA), published in April 2025, noted that India lacks facilities to refine battery-grade cobalt and remains entirely reliant on imports. Similar issues persist for copper and graphite due to smelting limitations and continued reliance on imports.
To bridge these gaps, the government has introduced several policy measures, including amendments to the Mines and Minerals (Development and Regulation) Act to streamline mining approvals and remove customs duties on critical minerals. The Geological Survey of India (GSI) has also been tasked with undertaking 1,200 exploration projects between 2024–25 and 2030–31 under the National Critical Minerals Mission.
India has been a member of the Mineral Security Partnership (MSP) since 2023, working with other governments and industry players to develop diverse and secure mineral supply chains to reduce dependence on China. Bilateral partnerships with other mineral-rich countries would also be useful. However, Mathai stresses the need for a stronger domestic mining industry, and that “more needs to be done in terms of reforms to yield better results.”
Speaking to StratNewsGlobal, Mathai said that one of the first steps toward a stronger domestic ecosystem should be the introduction of an exploration and production license model. “Exploration licenses need to be able to be seamlessly converted to mining licenses, or sold to more well-capitalised entrepreneurs willing to take up development of discovered
resources,” he said. Tax incentives are also necessary to encourage mineral processing industries.
He also emphasised the importance of community support for mining projects. Mineral development must be done with adequate environmental protection and ensure livelihood opportunities for affected communities. Without the support of local communities, projects will continue to face opposition, and “you won’t be able to build mines,” he cautioned.
While acknowledging the challenges ahead, Mathai’s paper concludes that India has a significant opportunity to transform its current vulnerability in critical minerals into a source of economic strength and strategic influence.
