Strengthening India’s Critical Mineral Value Chain: Policy Reforms and Circular Economy Integration
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The Ministry of Coal and Mines is accelerating reforms to bolster the critical mineral recycling ecosystem, backed by a ₹34,000 crore investment to reduce import dependency and promote sustainable resource management.
In a strategic move to secure India’s industrial future, the Union Ministry of Coal and Mines has announced a comprehensive roadmap to fast-track reforms within the critical mineral recycling sector. As India transitions toward a green economy, the demand for minerals such as lithium, cobalt, and rare earth elements—essential for electric vehicles, renewable energy infrastructure, and high-end electronics—has surged. Currently, India remains heavily reliant on imports for these resources, creating vulnerabilities in the supply chain that could impede the 'Make in India' initiative and the transition to net-zero emissions.
The government has earmarked approximately ₹34,000 crore to catalyze the development of a robust domestic critical mineral ecosystem. This financial outlay is intended to incentivize exploration, extraction, and, crucially, the establishment of advanced recycling facilities. By prioritizing the 'circular economy' model, the government aims to recover valuable minerals from electronic waste and industrial scrap, thereby mitigating the environmental degradation associated with primary mining and reducing the nation's trade deficit.
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