The Indian government has planned a major investment of ₹16,000 crore to develop the country’s critical minerals sector. This step is part of India’s efforts to secure essential raw materials like lithium, which are crucial for energy transition and industrial growth. Currently, India depends on imports to meet its rising demand for these minerals.
In 2023, the government identified 30 minerals, including lithium, as “critical” for the country’s energy transition and infrastructure development. These minerals are essential for various industries, including renewable energy, electric vehicles, and electronics manufacturing.
Out of the total planned funding of ₹16,300 crore, Prime Minister Narendra Modi’s cabinet is expected to approve an initial amount of over ₹2,500 crore this week. This decision is being discussed within the government, although the details have not yet been made public.
The funding will come from multiple government sources.
– State-run National Mineral Exploration Trust will contribute ₹8,700 crore.
– Department of Science and Technology will provide ₹1,000 crore.
– The Geological Survey of India, a government-backed exploration agency, will allocate ₹4,000 crore towards the development of the critical minerals sector.
This investment highlights India’s commitment to reducing its dependence on imported minerals. By strengthening domestic exploration and mining, the country aims to create a stable supply of critical minerals needed for advanced technologies. The Ministry of Mines has not yet responded to queries about the funding, but official documents reviewed by Reuters confirm the government’s push to develop this strategic sector.
With global demand for critical minerals rising, India’s move to invest in this area will not only support the country’s economic growth but also enhance its energy security. The development of domestic sources of lithium and other essential minerals will play a key role in India’s future as a leader in clean energy and industrial innovation.