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Even as India gallops toward becoming a global economic power, there are strategic missteps it cannot afford to make. One of these is the management of the country's critical minerals sector ensuring its industrial growth is not vulnerable to supply chain weaponisation.

The nation must not only develop its internal capabilities for processing and handling these minerals but also compete globally to stay ahead of the curve.

In the Economic Survey 2025-26, presented by Union Finance Minister Nirmala Sitharaman during the Budget session of Parliament, the government importantly highlighted the role critical minerals will play in shaping India’s economic trajectory.

The survey asserts that the nation’s progress depends on a sophisticated equilibrium between maintaining strategic autonomy and fostering global integration. This approach moves past simple regulatory compliance, aiming instead to construct supply chains that are not only resilient and affordable but also inclusive.

Why domestic reform is vital for resource security

Central to this vision is a shift in focus from mere raw material extraction to the robust development of end-to-end value chains.

By identifying critical minerals as the primary geopolitical chokepoints of the modern era, the survey frames the National Critical Mineral Mission (NCMM) as a fundamental pillar for India’s energy and industrial security.

Ultimately, the report highlights that securing these resources is no longer just a mining concern, but a prerequisite for long-term industrial stability and the successful transition to a greener economy.

India is securing its mineral future by opening the doors to private investment and fast-tracking domestic exploration under the updated MMDR Act [Mines and Minerals (Development and Regulation) Act].

At the same time, the country is looking abroad to lock in essential resources, such as the recent acquisition of lithium assets in Argentina through KABIL (Khanij Bidesh India Limited).

These moves ensure that India isn't just looking for minerals at home, but is actively competing on the global stage for the materials that power modern technology.

Building a circular economy

To protect itself from international supply shocks like China’s recent export curbs on magnets, India is also building a "circular economy." By investing Rs 1,500 crore into mineral recycling and incentivising the manufacturing of rare earth magnets, the government is ensuring that materials stay in the supply chain longer.

From the first dig in a mine to the recycling of old batteries, the goal is a self-reliant system that reduces dependence on risky imports.

The government is taking a more active role in strategic sectors by offering incentives and sharing risks with major industrial players, particularly where the market needs a boost.

This involves a multi-layered approach to electrification, ranging from Production Linked Incentives (PLI) for advanced battery manufacturing to direct demand support through the PM E-DRIVE Scheme.

These measures are designed to do more than just lower costs as they aim to build a deep, domestic manufacturing base. By localising the entire production cycle, India is positioning itself as a central hub in the global supply chain.

Fighting global protectionism

Despite the progress made, the Economic Survey 2025-26 warns that India faces several external threats that could derail its strategic goals.

Global trade is becoming more fragmented as countries turn toward protectionism and "strategic decoupling" essentially breaking away from integrated global markets to protect their own interests.

This shift is leading to stricter export controls on critical minerals and high-end technologies, which could block India’s access to the very tools it needs for its energy and digital transitions.

The survey also cautions that new international "green" standards, such as ESG (Environmental, Social and Governance) and traceability requirements, often act as hidden trade barriers.

While these standards are meant to promote sustainability, their high compliance costs can be a heavy burden for developing nations. The danger is that these rigid rules could trap India and other emerging economies in low-value roles.

Where India stands in terms of critical minerals

To counter these global headwinds, India is doubling down on identifying its own domestic reserves to ensure that its "green transition" is powered from within.

Coastal wealth

In a submission made in the Rajya Sabha on Thursday, it was mentioned that India’s coastlines and riverbeds hold a massive hidden fortune of industrial materials.

Government surveys have found millions of tonnes of minerals like rare earths, titanium and zircon embedded in common beach sands. These aren't just raw materials but they are the building blocks for the technology we use every day.

These minerals are vital for three major areas.

First, they power our electronics, providing the magnetic strength needed for smartphone motors and computer speakers. Second, they support the heavy industry and paint sectors, where they are used to make high-quality pigments and super-strong metal alloys for planes.

Finally, they are essential for energy and ceramics, acting as a protective shield for nuclear fuel and making high-performance ceramic tools that can withstand extreme heat.

Hard rock resources

India is moving its search for minerals beyond beach sands and into the "hard rock" terrains of states like Gujarat, Rajasthan and Karnataka.

This shift is paying off with the discovery of 1,800 tonnes of lithium in Karnataka, a huge win for the Electric Vehicle (EV) industry, as lithium is the main ingredient in modern batteries. These rocks also hold large amounts of niobium and zirconium, which are essential for building advanced technology.

These specialised metals are the backbone of India’s most advanced industries.

Niobium is used to build jet engines and rockets because it doesn’t melt or weaken under extreme heat. Tantalum is a "gold standard" material used to make tiny, reliable parts for missile guidance systems and cockpit electronics. Finally, Beryllium is prized for being incredibly stiff yet lightweight, making it perfect for building satellites and high-tech surveillance gear.

Fuelling energy independence

India’s energy independence is built on a massive domestic supply of nuclear fuel.

The country has confirmed over 439,000 tonnes of uranium, primarily in states like Andhra Pradesh and Jharkhand. This local supply is vital because it powers India's "safeguarded" reactors ensuring a steady baseline of electricity that is not affected by global politics or import delays.

While uranium provides the start, thorium is India's real long-term "secret weapon."

Found in the monazite sands of its coastlines, India’s thorium reserves are among the largest in the world.

They are the centre of a three-stage programme designed to eventually switch from rare uranium to abundant thorium.

Once fully active, this plan will allow India to produce clean, carbon-free electricity for hundreds of years, making the nation completely self-sufficient in energy.