India's Cabinet has approved a five-year, ₹2,814 crore scheme to boost critical mineral processing, aiming to strengthen the domestic ecosystem and reduce reliance on imports. This strategic move targets self-reliance in minerals essential for electric vehicles and high-tech manufacturing.
₹2,814 crore
Scheme Outlay
⏳ Time Machine
How today’s news fits into the bigger picture
2015
Make in India push for manufacturing
Prime Minister Modi launched the 'Make in India' initiative to boost domestic manufacturing across 25 sectors, aiming to increase the manufacturing sector's contribution to GDP to 25% and create jobs.
2020
First Critical Minerals list released
India's Ministry of Mines identified an initial list of , signaling the government's recognition of their strategic importance for national security and economic growth, spurring calls for policy intervention.
2022
Auction of critical mineral blocks
The government initiated the auction of several blocks containing like lithium and graphite, aiming to encourage domestic exploration and mining through private sector participation.
March 2024
India joins Mineral Security Partnership (MSP)
India formally joined the US-led Mineral Security Partnership, a group of 14 countries focused on securing critical mineral supply chains, indicating its commitment to global collaboration while pursuing domestic capabilities.
Early 2026
Report highlights import dependence
A government-commissioned report highlighted India's high import dependence for over 90% of its critical mineral needs, reiterating the urgency for domestic processing infrastructure to support ambitious EV and renewable energy targets.
Today
Cabinet approved a five-year, ₹2,814 crore scheme to boost critical mineral processing, aiming for self-reliance.
What happens next?
The Ministry of Mines will now draft detailed guidelines and invite proposals from public and private entities for setting up processing units, with initial projects expected to be announced within the next year.
In a significant strategic move, the Indian Cabinet has given its nod to a five-year scheme with an outlay of **₹2,814 crore** aimed at bolstering the processing of critical minerals. This ambitious initiative, slated for implementation from FY 2026-27 to FY 2030-31, seeks to build a robust domestic ecosystem for these essential resources. Critical minerals, such as lithium, cobalt, and rare earth elements, are vital components for a wide array of high-technology applications, including electric vehicle (EV) batteries, solar panels, defense equipment, and advanced electronics. The policy aims to reduce India's heavy reliance on imports for these strategic minerals, thereby enhancing national security and positioning India as a key player in global supply chains. By incentivizing domestic processing, the government hopes to create jobs, attract investment, and ensure a stable supply for its burgeoning clean energy and manufacturing sectors.
💭 If you're wondering…
Critical minerals are specific raw materials vital for high-tech industries and national security, but whose supply faces risks due to geological scarcity, geopolitical concentration, or complex processing. Examples include lithium for batteries and rare earths for electronics.
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