New York/Washington, Jan 11 – Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, has arrived in Washington D.C. to attend a critical minerals meeting hosted by U.S. Treasury Secretary Scott Bessent. The meeting, scheduled for Monday, will bring together G7 finance ministers and representatives from other countries, including Australia and India, to discuss strategies for securing critical mineral supply chains.
Vaishnaw highlighted the importance of secure critical mineral supply chains for India's goal of "Viksit Bharat" (Developed India) in a post on social media platform X. The discussions in Washington are expected to center on the geopolitical implications of mineral resources, particularly those dominated by China, which are vital for global economic security.
The U.S. is increasingly engaging with India on this front, signaling a willingness to include India in initiatives aimed at diversifying supply chains away from China. India is also set to join the Pax Silica initiative led by the U.S. ahead of the Artificial Intelligence Impact Summit to be held in New Delhi on February 19 and 20.
China currently controls a significant portion of the world's supply chain for key minerals like lithium, cobalt, and rare earths, which are essential for various technologies, defense applications, and green energy solutions. By collaborating with other nations and launching its own National Critical Mineral Mission, which includes exploration projects and plans for auctioning over 100 mineral blocks, India aims to reduce its dependence on China and play a more prominent role in shaping the future of technology manufacturing.
India has recently announced a scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM). This scheme aims to enhance India's participation in global advanced-materials value chains while reducing import dependence. With a financial outlay of Rs 7,280 crore, the scheme seeks to establish 6,000 metric tonnes per annum of integrated REPM manufacturing capacity, covering the entire chain from rare-earth oxides to finished magnets. The initiative is designed to enhance competitiveness, attract technology-driven investment, and support long-term scalability, while also contributing to energy-transition goals and India's Net Zero 2070 vision.
By establishing domestic capabilities and strengthening downstream linkages, the government aims to generate employment, deepen industrial capacity, and support the vision of Atmanirbhar Bharat (Self-Reliant India). The scheme will distribute a total of 6,000 MTPA of domestic manufacturing capacity across five beneficiaries through global competitive bidding, with each eligible for up to 1,200 MTPA. It includes Rs 6,450 crore as sales-linked incentives over five years and a Rs 750 crore capital subsidy, and will be implemented over seven years, with a two-year gestation period followed by five years of incentive disbursement, according to the government.
Vaishnaw's visit to Washington underscores India's proactive approach to securing its critical mineral supply chains and its commitment to collaborating with international partners to address this crucial issue. The discussions are expected to pave the way for greater cooperation and investment in this strategically important sector.
