India launches ₹2,814 crore plan to boost critical mineral processing

The Cabinet's approval of the ₹2,814 crore scheme marks a significant step toward developing India's critical mineral ecosystem domestically. The programme will run through fiscal year 2030-31, focusing on establishing and upgrading processing infrastructure for minerals essential to electronics, renewable energy, defence, and aerospace industries.

Critical minerals—including rare earth elements, lithium, cobalt, and nickel—are vital for manufacturing batteries, semiconductors, and renewable energy technologies. Currently, India relies heavily on imports for processed critical minerals despite holding substantial domestic reserves of raw materials. The new scheme aims to bridge this gap by encouraging private investment and capacity-building in the processing sector.

The five-year initiative is expected to create manufacturing capabilities within India, reducing import dependence and generating employment opportunities across mining-dependent regions. By establishing a robust processing infrastructure, the scheme will also position India as a competitive hub for critical mineral value addition in South Asia.

Implementation of the scheme aligns with India's broader strategy to secure supply chains for emerging technologies and achieve self-sufficiency in strategic sectors. The initiative comes as global demand for critical minerals surges due to the global energy transition and increased electronics consumption.