A Missing Link in India’s Mineral Mission

  • December 04, 2025
  • Economy

The Hindu

A Missing Link in India’s Mineral Mission

1. Key Arguments Presented

A. India’s mineral strategy focuses too heavily on extraction, not value addition

The authors argue that India’s new rare earth magnet scheme, though valuable, does not address the core gap:
India extracts minerals but does not sufficiently process, refine, or manufacture them into value-added strategic components.

B. Overdependence on China is the structural vulnerability

Despite improved domestic mining policies, India remains highly dependent on China for refined minerals, processing technologies, and downstream manufacturing inputs.

C. India needs capacity across the entire value chain

The article stresses three urgent interventions:

  1. Create Centres of Excellence for advanced mineral processing technology.
  2. Invest in secondary mineral processing and recycling, especially for aluminium, copper, and battery materials.
  3. Train a specialised workforce in hydrometallurgy, mineral refining, and advanced materials engineering.

D. National security, economic competitiveness, and green-energy transition depend on mineral autonomy

Minerals underpin electric mobility, batteries, solar modules, electronics, aerospace, and defence—making them central to India’s industrial and strategic ambitions.

E. India needs deeper global alliances

Strengthening mineral diplomatic partnerships with the U.S., Australia, Canada, Africa, and Latin America is critical to diversify supply chains.

2. Author’s Stance

The authors adopt a pragmatic, techno-strategic stance.
They are clearly supportive of government initiatives but emphasise that extraction alone cannot fulfil India’s mineral-security needs. Their position advocates a shift from raw material dependence toward a processing- and technology-led model, similar to China’s integrated supply chain system.

The article frames mineral policy as:

  • an industrial strategy issue,
  • a national security imperative,
  • and a prerequisite for India’s energy transition.

This stance is reasoned, grounded in global trends, and aligned with contemporary strategic policy thinking.

3. Possible Biases

A. Overemphasis on technological solutions

The article assumes that creating domestic refining and processing capabilities is primarily a technological challenge. It underplays:

  • environmental concerns,
  • land and community conflicts,
  • regulatory risks,
  • gestation time of establishing mineral parks.

B. Limited attention to ecological impacts

While advocating recycling, it does not adequately discuss:

  • mining-induced displacement,
  • ecological degradation,
  • groundwater risk,
  • waste management.

C. Assumes easy scalability of high-end technologies

India’s past struggles with semiconductor manufacturing and green hydrogen innovation indicate that technological self-reliance is complex.

Despite these biases, the article remains largely balanced and policy oriented.

4. Structured Analysis

A. Pros

  1. Identifies the most critical gap in India’s mineral ecosystem
    – the missing midstream link between extraction and final manufacturing.
  2. Strong strategic framing
    Shows how minerals impact defence, EVs, renewables, aerospace, and electronics.
  3. Emphasis on skill development
    Highlights the shortage of metallurgists and mineral technologists in India.
  4. Supports alignment with global mineral alliances
    Reflects India’s efforts under Quad, IPEF, and bilateral partnerships.
  5. Promotes circular economy and recycling
    Helps reduce dependence on imports.

B. Cons

  1. Underplays environmental and social governance issues
    Mining and processing expansion should have accompanying safeguards.
  2. Insufficient discussion on financial viability
    Capital-intensive refining plants require long-term subsidies and regulatory clarity.
  3. Does not address bureaucratic hurdles
    Real-world bottlenecks—permits, clearances, land acquisition—are major constraints.
  4. Assumes industry uptake immediately
    Indian private sector may hesitate to invest without strong market assurance.

5. Policy Implications

A. Aligns with National Mineral Policy and Atmanirbhar Bharat

Encourages India to move up the value chain toward refined minerals and advanced alloys.

B. Supports India’s climate goals

Localising battery-grade materials can accelerate adoption of EVs and renewables.

C. Strengthens national security

Reduces strategic vulnerability to Chinese supply chain disruptions.

D. Enhances economic competitiveness

Participating in the downstream value chain ensures higher export revenue and domestic jobs.

E. Supports creation of Mineral Technology Hubs

Integration with CSIR labs, IITs, and specialised training institutes will strengthen technological depth.

6. Real-World Impact

Economic Impact

  • Boosts manufacturing capabilities in batteries, solar PVs, and electronics.
  • Improves India’s attractiveness to global investors and supply chains.

Strategic Impact

  • Reduces dependence on foreign processing, especially China.
  • Enhances resilience during geopolitical disruptions.

Social Impact

  • New skilling and employment opportunities.
  • However, potential ecological and community impacts must be addressed.

Environmental Impact

  • Promotes recycling and secondary processing, reducing raw mining pressure.

7. Alignment with UPSC GS Papers

GS Paper 1

  • Economic geography: mineral distribution and industrial development.

GS Paper 2

  • Government policies in mining, technology, and industrial strategy.
  • International relations: mineral diplomacy.

GS Paper 3

  • Infrastructure, industries, energy security, science and technology.
  • Sustainable development and circular economy.
  • Strategic minerals and Atmanirbhar Bharat.
  • Disaster and environmental governance (impact of mining).

GS Paper 4

  • Ethical issues in mining: sustainability, equity, intergenerational justice.

Essay

  • “Science, technology and national development”.
  • “Resource security in a changing world”.
  • “India’s quest for strategic autonomy”.

8. Balanced Summary

The article effectively highlights a critical blind spot in India’s mineral strategy: focusing on extraction while neglecting processing, refining, and manufacturing. It argues convincingly that mineral security is central to India’s industrial growth, defence preparedness, and clean energy transition. While the proposed solutions—technology hubs, recycling expansion, skilled manpower—are pragmatic, the article underplays ecological concerns and regulatory bottlenecks. Nonetheless, it offers a timely, structured blueprint for strengthening India’s position in the global mineral value chain.

9. Future Perspectives

  1. Develop integrated Mineral Parks combining extraction, refining, and manufacturing.
  2. Strengthen environmental safeguards in mining and processing clusters.
  3. Create a National Mission on Critical Mineral Technologies.
  4. Enhance global partnerships with mineral-rich nations.
  5. Invest in frontier technologies like rare-earth magnet recycling, urban mining, and green refining.
  6. Promote long-term financial incentives for private sector participation.
  7. Incorporate sustainability, community rights, and ecological safety into mineral policy design.