Critical minerals race: India looks to UK, EU for supply chains

The push to secure critical minerals (resources like lithium, cobalt, and rare earth elements essential for modern technology) is vital for India's economic growth and transition to clean energy. The minister's focus on building resilient supply chains highlights the vulnerability of depending on a single source (often China, which dominates the processing of many critical minerals). This dependency can lead to the weaponization of trade, where a country uses its market dominance to exert political or economic pressure. The news highlights efforts to establish collaborations and Free Trade Agreements (FTAs) to ensure a steady supply of these minerals, which are crucial for sectors like EVs, electronics, and defense. UPSC might ask about the economic implications of critical mineral dependency and the strategies to diversify supply chains, including the role of initiatives like the Minerals Security Partnership (MSP), which India recently joined, though not explicitly mentioned in this article, it is highly relevant context.

The article underscores a strategic shift in India's foreign policy towards securing critical resources through geopolitical partnerships. The mention of the US and the critical minerals partnership, along with the Pax Silica initiative, demonstrates a strategy of aligning with 'like-minded, democratic' nations to counter dominant players. Exploring trade pacts with the Gulf Cooperation Council (GCC) and Israel further illustrates India's multi-aligned approach to resource security, balancing interests across different regions. The growing cooperation with the UK, highlighted by the potential India-UK trade deal aiming for tariff-free access, shows how economic diplomacy is being used to deepen strategic ties and integrate Indian manufacturing into global supply chains. Questions could focus on how India uses bilateral and multilateral agreements to secure its energy and technological future amidst changing global geopolitics.

From a governance perspective, the focus is on industrial policy and employment generation. The minister urged automotive component makers to scale up from local to global businesses, aligning with the Make in India initiative's goal of making India a global manufacturing hub. The minister's assertion regarding strong demand for workers, specifically citing the textile sector in Tiruppur, counters narratives of jobless growth. This highlights the governance challenge of matching skill development with industry needs. The government's role involves not just securing raw materials (critical minerals) but also creating an enabling environment (through FTAs and policy support) for domestic industries to become globally competitive, thereby driving employment generation. UPSC could frame questions around the effectiveness of industrial policies in creating jobs and integrating domestic industries into global value chains.