Amid growing concerns over China's dominance in critical mineral production and supply chains, Prime Minister Narendra Modi is spearheading a critical minerals initiative to bolster India's energy and supply chain security. This initiative aims to promote recycling, ease supply chain pressures, and advance joint research, marking a significant step towards self-reliance and diversification.
Speaking at the G20 Summit in Johannesburg on Saturday, November 22, 2025, Modi proposed a G20 Critical Minerals Circularity Initiative to promote recycling, urban mining, second-life batteries, and related innovations. The initiative seeks to strengthen supply chain security and develop cleaner pathways of development. This proposal aligns with India's commitment to sustainability and clean energy transitions, addressing the increasing impact of climate change on food security.
The Prime Minister's call for a critical minerals initiative comes at a time when China, which holds a significant monopoly in critical mineral production, is increasingly imposing export restrictions. This has prompted India to reduce its dependence on imports from Beijing and strengthen its domestic production capabilities. Recognizing the strategic importance of these minerals for electric vehicles, electronic manufacturing, and other key sectors, the Indian government has been actively working to secure its mineral supply chains.
In January 2025, India launched the National Critical Mineral Mission (NCMM) with a total expenditure of Rs 16,300 crore and an expected investment of Rs 18,000 crore from PSUs and private partners. The NCMM serves as a strategic roadmap to secure mineral supply chains, ensure energy independence, and bolster industrial resilience. The mission encompasses every stage, from exploration and extraction to processing, recycling, R&D, and human capital development.
Furthermore, the Union Cabinet has approved the rationalization of royalty rates for graphite, caesium, rubidium, and zirconium to boost domestic production and reduce import dependence. The decision is expected to promote the auction of mineral blocks containing these elements, unlocking access to associated critical minerals such as lithium, tungsten, rare-earth elements (REEs), and niobium. Union Minister Ashwini Vaishnaw noted the need to change the royalty structure of critical minerals, as very high royalties were imposed on them. The cabinet decided to reduce the royalty of caesium, graphite, rubidium, and zirconium to increase their production.
These efforts are aligned with India's broader economic strategy, which emphasizes self-reliance, export diversification, and resource security. The recent policy push through the Export Promotion Mission (EPM) and the revision of royalty rates for critical minerals mark a decisive step in that direction. The Union Cabinet has approved the Export Promotion Mission (EPM) with an outlay of Rs 25,060 crore for the period 2025–26 to 2030–31. EPM seeks to unify various fragmented export schemes into a single, outcome-driven framework to boost India's export competitiveness.
Prime Minister Modi's initiative underscores India's commitment to building a resilient and sustainable future. By promoting recycling, fostering innovation, and ensuring access to critical minerals, India aims to strengthen its position in the global economy and contribute to a cleaner, more secure world.
