India in talks with multiple countries to develop critical minerals for domestic needs: Piyush Goyal

The transition to clean energy and advanced manufacturing hinges heavily on critical minerals like lithium, cobalt, and rare earth elements. Currently, global supply chains for these minerals are highly concentrated, creating significant vulnerabilities. India's strategy to engage in bilateral and multilateral partnerships aims to secure its domestic requirements and reduce import dependence, crucial for its ambitious goals in electric vehicles, renewable energy, and electronics manufacturing. The emphasis on expanding market access through recent Free Trade Agreements underscores a shift in India's trade policy towards securing zero-duty access in developed markets. This aligns with the broader objective of integrating Indian businesses into global value chains, allowing them to compete internationally and potentially boosting the manufacturing sector's contribution to GDP under initiatives like Make in India.

The geopolitics of critical minerals is increasingly central to international relations, often described as the 'new oil.' Control over these resources translates to strategic advantage in the 21st century. India's active participation in groupings like the Critical Minerals Partnership and the Pax Silica grouping (a conceptual framework focusing on strategic alliances around silicon and other tech-critical materials) reflects a deliberate effort to diversify supply chains away from single-source dominance (often China). Engaging with the US, UK, and European partners demonstrates a alignment with Western democratic nations to build 'resilient' and secure supply chains. This aligns with the concept of friend-shoring, where trade is prioritized with countries sharing similar values and geopolitical interests, mitigating the risk of supply disruptions due to geopolitical tensions.

The push for critical minerals is intrinsically linked to India's climate commitments, including the target to achieve net-zero emissions by 2070, announced at COP26. These minerals are essential for technologies driving the energy transition, such as solar panels, wind turbines, and energy storage systems. However, the mining and processing of these minerals often have significant environmental impacts, including water pollution and habitat destruction. Therefore, while securing supply is vital, UPSC aspirants must also consider the need for sustainable extraction and processing practices. Developing domestic capabilities or partnering for processing (as mentioned in the article) must be accompanied by stringent environmental regulations and the promotion of circular economy principles (like battery recycling) to ensure that the transition to green energy does not create new environmental crises.