India’s dependence on imports of critical minerals is increasing as demand for these resources grows across sectors including clean energy, electronics, electric mobility, defence and advanced manufacturing, according to NITI Aayog.
Critical minerals such as lithium, cobalt, nickel, rare earth elements and graphite are increasingly important for emerging technologies and industrial applications. India’s limited domestic availability of several of these resources has resulted in significant reliance on overseas supplies.
The rise in demand is being driven by the expansion of electric vehicles, renewable energy systems, battery storage, semiconductor manufacturing and other technology-intensive industries.
NITI Aayog has highlighted the need to strengthen domestic exploration, mining, processing and recycling capabilities to reduce vulnerabilities arising from concentrated global supply chains.
India is also pursuing overseas mineral assets and partnerships to diversify sources of supply. Greater cooperation with mineral-rich countries could help Indian companies secure long-term access to strategically important resources.
Recycling is another area gaining importance as the country seeks to recover critical minerals from used batteries, electronic waste and other industrial materials.
The growing import requirement highlights the strategic importance of building a more resilient critical-mineral supply chain. Expanding domestic production and processing capacity could help India support its industrial and clean-energy ambitions while reducing exposure to disruptions in international markets.
The government’s efforts in this area are expected to remain an important part of India’s broader strategy for energy security, manufacturing and technological development.