Incentives, investments in tech, infra imperative: GTRI
GTRI said in its report that India is focusing on developing its critical mineral sector as it is vital for high-tech and renewable energy technologies.
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NEW DELHI: Measures such as fiscal incentives, investments in technology and infrastructure, mining operations abroad and conducive regulatory environment are a must for developing India’s critical mineral sector, a report by think tank GTRI said on Monday.
The Global Trade Research Initiative (GTRI) said in its report that India is focusing on developing its critical mineral sector as it is vital for high-tech and renewable energy technologies.
At present, India depends on imports, particularly from countries like China, Congo, Chile, Indonesia, South Africa, Argentina, Vietnam, US, Canada and Australia.
Critical minerals such as lithium, chromium, cobalt, antimony, arsenic, barite, beryllium, bismuth, cesium, fluorspar, gallium, germanium, graphite, hafnium, and others are indispensable for modern technologies.
They are integral to the manufacturing of various high-tech applications, including mobile phones, flat-screen monitors, wind turbines, electric vehicles (EVs), solar panels, drones, jet engines, satellites, and pacemakers.
These are termed critical minerals as any supply disruptions due to scarcity, political tensions, or other factors may adversely affect the security and economy of a country, it said.
Despite having significant reserves of rare earth elements and other critical minerals, India lacks commercial production capability, mainly due to the absence of domestic processing facilities, it said, adding this results in high import dependency for these minerals.
“As the world continues to transition towards green technologies, the importance of these minerals and the geopolitics surrounding them will only increase. World is already witnessing critical mineral supply gaps,” GTRI founder Ajay Srivastava said.
He said there is an increase in demand for critical minerals, leading to supply-demand deficits and price volatility and this situation could adversely affect a vast array of industries, hinder clean energy transition and affect energy security.
