Critical Minerals and Indian Defence
India has taken steps to boost its self-sufficiency in critical minerals and enhance its defence manufacturing capabilities. The recent suspension of the Indus Waters Treaty with Pakistan marks the geopolitical tensions that can disrupt supply chains. As nations reassess their trade relationships, India aims to reduce dependence on foreign imports for essential minerals and metals. This move is crucial for sustaining military production and ensuring national security.
Importance of Critical Minerals
Critical minerals are essential for modern defence technologies. They improve the performance and durability of military equipment. Key minerals include titanium, tungsten, lithium, and rare earth elements. These materials are vital for developing advanced weapon systems and enhancing operational capabilities.
India’s Defence Manufacturing Landscape
India’s defence production has seen a remarkable transformation. As of 2025, 65% of defence equipment is manufactured domestically. This shift from a 70% import reliance marks achievement. The defence sector comprises 16 public sector undertakings and over 16,000 micro, small, and medium enterprises (MSMEs). The Defence Research and Development Organisation (DRDO) has successfully developed systems like the Akash air defence and BrahMos missiles.
Economic Impact of Defence Production
The financial year 2023-24 witnessed defence production reaching ₹1.27 lakh crore, a 174% increase since 2014-15. Defence exports also surged, hitting ₹21,083 crore, reflecting a 30-fold growth in a decade. This growth aligns with the government’s initiative for Atmanirbhar Bharat or self-reliance in military supplies.
Role of Rare Earth Elements
Rare earth elements (REEs) are crucial for advanced military technologies. They enable precision in radar, sonar, and guidance systems. REEs are integral to the production of magnets used in precision-guided munitions. India ranks third globally in REE reserves, with production capabilities.
Domestic Mineral Reserves and Exploration
India has substantial mineral reserves, yet only 20% of its geological wealth has been explored. The country possesses approximately 163.9 million tonnes of copper reserves and 6.9 million tonnes of rare earths. However, it remains dependent on imports for lithium and nickel, creating vulnerabilities in its supply chain.
Key Players in Mineral Production
Several Indian companies are very important in the critical minerals sector. Vedanta is a major player in aluminium and nickel production. NALCO is a leading aluminium producer and is involved in extracting rare earth elements. Hindustan Copper and Coal India are also expanding their operations to meet the growing demand for critical minerals.
What is the National Critical Mineral Mission (NCMM)?
Main Goal:
- To make India self-reliant in critical minerals used in clean energy, high-tech industries, and national defense.
- To reduce dependence on imports of these minerals.
Key Features:
- Complete Mineral Cycle Coverage:
- Covers exploration, mining, processing, and even recovery from waste products (like used batteries or electronics).
- Will increase mineral search efforts inside India and offshore areas.
- Teamwork Approach:
- Uses a “whole-of-government” model—brings together ministries, PSUs, private companies, and research bodies.
- A fast-track approval system will speed up critical mining projects.
- Mineral Reserves Stockpiling:
- Plans to store important minerals so India has enough supply in the future.
- Global Outreach:
- Promotes Indian companies to invest in mineral assets abroad.
- Aims to build trade relationships with countries rich in minerals.
- Infrastructure and Innovation:
- Will set up mineral processing parks in India.
- Promotes recycling of critical minerals.
- Will establish a Centre of Excellence to support research.
- Offers financial help to companies for setting up processing units in India.
- Expands the PRISM scheme to support startups and MSMEs in the mineral sector.
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