India’s dependence on imported critical minerals is increasing as demand for these resources grows, according to a new report by NITI Aayog. The report highlights the growing importance of critical minerals for clean-energy technologies and India’s broader industrial development.
Global Trade in Critical Minerals Surges
Global trade in energy-related critical minerals has increased sharply over the past two decades. According to the report, annual global trade rose from $53 billion in 2002 to $378 billion in 2024. This significant increase reflects the growing demand for minerals required across advanced manufacturing and clean-energy applications.
Domestic Manufacturing Faces Challenges
The report also identified factors contributing to India’s dependence on critical mineral imports. For example, zero-duty imports of nickel-based superalloy bars and rods continue despite the availability of domestic manufacturing capabilities. As a result, such imports can contribute to greater import dependence while also limiting the utilisation of investments made in India’s domestic manufacturing sector.
Clean Energy Drives Mineral Demand
Meanwhile, demand for critical minerals is expected to rise substantially as India and other economies expand clean-energy technologies. The growing adoption of electric vehicles, battery energy storage systems and renewable energy is expected to further increase the need for these minerals. As reported by thehindubusinessline.com, strengthening domestic manufacturing capabilities and improving the utilisation of existing investments could help India address its growing critical mineral requirements and reduce import dependence.
