Topic: GS2 – Governance, GS3 – Indian Economy Understanding critical minerals is crucial for India’s economic growth, national security, and low-carbon energy transition, relevant for UPSC exams. |
| Context: |
| ● The news pertains to the inauguration of the ‘Critical Minerals Summit’ in New Delhi, focusing on enhancing beneficiation and processing capabilities, with an emphasis on India’s mineral exploration and production. |
Analysis of the news:
- The ‘Critical Minerals Summit: Enhancing Beneficiation and Processing Capabilities’ began at the India Habitat Centre, New Delhi.
- The summit aims to promote collaboration and innovation in critical minerals beneficiation and processing.
- It was inaugurated under the Ministry of Mines’ patronage, with a government official overseeing the opening ceremony.
- Exhibition pavilions showcased diverse minerals from terrestrial and marine environments.
- India’s urgent need for robust exploration and utilisation of critical minerals was emphasised.
- Recent government initiatives, including mineral block auctions, were highlighted to accelerate domestic mineral exploration and production.
- A Memorandum of Understanding (MoU) was signed between the Ministry of Mines and Shakti Sustainable Energy Foundation.
- The MoU aims to initiate a partnership focused on providing knowledge support in critical minerals for India’s economic development, national security, and low-carbon energy transition.
| Critical Minerals and their significance |
What are Critical Minerals? ● Definition: Critical minerals are those minerals that are essential for economic development and national security, the lack of availability of these minerals or concentration of extraction or processing in a few geographical locations may lead to supply chain vulnerabilities and even disruption of supplies. (Source – Ministry Of Mines Website) ● Essential Components: Critical minerals are natural resources that are vital for various industrial sectors, including technology, defence, energy, and healthcare. ● High Economic Value: These minerals possess unique properties and play a crucial role in the manufacturing of advanced technologies and products. ● Limited Availability: Critical minerals are characterised by limited global reserves and concentrated production in a few countries. ● Strategic Importance: They are essential for national security, economic competitiveness, and sustainable development. ● Diverse Applications: Critical minerals are used in diverse applications such as electronics, renewable energy, aerospace, and healthcare industries. Significance for Indian Economy: ● Industrial Growth: Access to critical minerals promotes industrial growth, innovation, and technological advancement, driving economic development. ● Reduced Import Dependency: Domestic availability of critical minerals reduces import dependency, enhances supply chain resilience, and strengthens economic sovereignty. ● Strategic Advantage: Securing a stable supply of critical minerals provides India with a strategic advantage in key sectors and reduces vulnerability to global market fluctuations. ● Job Creation: Development of critical mineral reserves generates employment opportunities, fosters entrepreneurship, and stimulates economic activity in mining and related industries. ● Energy Security: Critical minerals are essential for the development of clean energy technologies, contributing to India’s energy security and transition to a sustainable and low-carbon economy. |
| Practice Question: How do critical minerals contribute to a nation’s economic growth, national security, and energy transition? Discuss with reference to India’s initiatives and challenges. (150 Words /10 marks) |
