Authors: Akshatha Allen G., Debolina Bhattacharyya, Sweta Tevatia.

Abstract:

India’s green transition necessitates strategic raw material diplomacy to secure critical mineral supply chains amid energy security requirements, rising demand and geopolitical challenges. This paper highlights key government initiatives such as the National Critical Minerals Mission, international collaborations, and domestic manufacturing capabilities implemented for efficient raw material diplomacy. Concerns of exploitative extractivism can be mitigated by sustainable mining, critical mineral recycling, and circular economy practices. explores India’s policy landscape, emphasizing sustainable energy security, global partnerships, and resource governance. By leveraging ethical trade, technological advancements, and workforce upskilling, India can mitigate supply risks, ensure environmental sustainability, and strengthen its position as a leader in the global energy transition.

Keywords:

Critical Minerals, Electro-mobility, Raw Material Diplomacy, Resource Governance, Energy Security

Introduction:

The security of industrialized nations, whether capitalist or communist, depends on the ready access to essential raw materials and resources. Without it, economies would eventually collapse and societies would begin to disintegrate in the face of consequent civil disorder (Maull, 1984). Given the pace of developments in green energy, electro-mobility and digitalization, the demand for metals and critical minerals is projected to grow rapidly in the coming years (Müller, Saulich, & Schulze, 2023). 

The annual Union Budget of India for the financial year 2023-24 identified inclusive development and green growth among its seven key priorities (Viksit Bharat, 2025). The allocation toward green infrastructure and renewable energy was increased by nearly 50% as compared to the previous year, signaling a stronger commitment to India’s climate mitigation goals (Deb et. al., 2023b). A number of green initiatives such as the National Hydrogen Mission and the grid connected solar and wind projects are now financed by the Sovereign Green Fund (Ministry of New and Renewable Energy, n.d.).

However, it has been estimated that India will need investments between $160 billion and $200 billion per annum to achieve its energy transition targets, which is about 5% of its current GDP (Deb et.al., 2023a). Significant policy action to attract private, and in particular international, capital is needed. The challenging geopolitical environment stemming from supply disruptions from China will require India to augment its domestic manufacturing capabilities for green infrastructure (Deb & Kailash, 2023). 

Thus, there is a need to revive raw material diplomacy both in theory and practice to strategically position India’s green transition on the safe front of growing  geopolitical rivalry and global supply chain risks.

Raw Material Diplomacy:

The International Renewable Energy Agency (IRENA)’s 1.5°C scenario posits that renewables will constitute 91% of the energy mix by 2050, a shift that would increase renewables-based installed capacity from 3300 gigawatts (GW) in 2022 to 33 000 GW in 2050 (International Renewable Energy Agency, 2023). For India, the Green transition has rapidly changed the types of inputs and raw materials required in industries. Rare earths, for instance, which were not used at all in the Indian manufacturing sector a decade ago, will now be required for most green technologies (Mitra, 2021). 

Raw material diplomacy refers to the strategic efforts by nations to secure access to essential raw materials critical for their economic and industrial activities (Bleischwitz & Perincek, 2017). The report by the National Research Council (2008) considers a mineral to be critical “if it performs an essential function for which few or no satisfactory substitutes exist” and “if an assessment also indicates a high probability that its supply may become restricted, leading either to physical unavailability or to significantly higher prices for that mineral in key applications”. Efficient raw material diplomacy requires a combination of trade policies, international partnerships, and sustainable resource management practices to be effective. 

In the context of the European Union (EU), raw material diplomacy has emerged as a pivotal component of its international economic strategy. The EU’s approach focuses on ensuring undistorted and free market access to vital resources, particularly in response to rising global competition and resource nationalism (Biedermann, 2016). China’s raw material diplomacy, on the other hand, is characterized by a pattern of aid and investment aimed at securing access to critical resources (Biedermann, 2018). 

However, the perspective of India related to the growing field of renewable energy, energy security and geopolitics has been found to be largely missing (Kaur & Rehman, 2024). With rising demand on one side and the supply chain risks associated with it on the other side compounded by India’s high dependence on imports for these limited reserves calls for a pragmatic shift in the policy and diplomatic strategies. The aim of this research is to fill this gap by situating the strategy of India’s raw material diplomacy at the conjunction of green transition enabling dynamic resource governance without compromising on the Sustainable Development Goals.

Implementing the Green Transition: 

Scholten (2018) argues that an important dimension of interstate energy relations is the implications on the development of domestic Renewable Energy (RE). Krampe, Hegazi, and VanDeveer (2021) posit that environment-related international projects can be conducive to reducing political fragility and enhancing global peace. The demand for minerals for green transition could grow by up to 1000% in 20 to 30 years (World Bank Group, 2017). This has prompted countries worldwide to adopt critical mineral policies to boost domestic production, technology, R&D, skill development, and infrastructure for enhanced extraction and value addition. Some of the policies include USA’s Inflation Reduction Act (IRA), EU’s Critical Raw Materials Act and Japan’s Economic security Act (Ministry of Mines, n.d.). 

Targeted policies aimed at ensuring universal access to electricity, increasing the availability of liquid petroleum gas for cooking in rural areas, increasing the share of natural gas in the energy mix to 15%, subsidizing the sale of electric vehicles through the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, and producing green hydrogen through the National Hydrogen Mission have been implemented (Deb et. al., 2024b). As a frontrunner in adopting green energy, India’s demand for renewable energy equipment will increase exponentially (Dadwal, 2020).  Therefore, there is a pressing need for India to secure access to critical minerals supply chains through global partnerships and enhance its domestic productions to meet the domestic demand.

Energy Security and Resource Governance: 

Critical minerals are geographically confined to few countries, triggering a race among nations to gain access to them in view of rising demand for the energy transitions and other strategic sectors (Home, 2020). In June 2023, the Ministry of Mines released a list of 30 critical minerals, highlighting their strategic importance. 

To promote exploration and technical capability building, the Mines and Minerals (Development and Regulation) Act, 1957, and the Offshore Areas Minerals (Development and Regulation) Act, 2002, were amended in August 2023 (Press Information Bureau, 2023) and the National Critical Minerals Mission (NCMM) was launched to secure critical mineral supplies and strengthen value chains. Manpower skilling is also being enhanced through the Craftsman Training Scheme in Industrial Training Institutes (ITIs) (Ministry of Mines, n.d.).

Additionally, India has successfully engaged with resource-rich countries to fulfil its domestic requirements that include KABIL (Khanij Bidesh India Ltd.) accessing critical mineral reserves in Argentina, Chile, and Australia (Sinh, 2024), India-EU Trade and Technology Council with EU (Press Information Bureau, 2025) and US-India Initiative on Critical and Emerging Technology (iCET) (Sinh, 2024). India has also indulged in various groupings like G-20’s “Voluntary High-level Principles for Collaboration on Critical Minerals for Energy Transitions” (2023), Minerals Security Partnership (MSP) and Indo-Pacific Economic Framework (IPEF) for collaboration on critical minerals (Ministry of Mines, n.d.).

To ensure a self-reliant critical mineral value chain, tackle China’s dominance in rare earth metals (Dadwal, 2020) and fulfil the broader vision of Atmanirbhar Bharat (Press Information Bureau, 2025), India also introduced policies to ensure an energy secured future. 

Extractivism and Sustainable Development:

In many regions of the developing world, current energy transition has been associated with land grabs, population displacements, poor working conditions, and marginalization or the adverse incorporation of small-scale producers. None of the developing countries that provide raw materials in the global economy has been able to use this boom to add value to their exports and move into processing and manufacturing. This makes them uneconomical, as well as socially and environmentally unjust, inextricably linking it to exploitative extractivism in a myriad of ways (Vergara&Camus, 2023).

The existing energy laws in India also predominantly prioritize facilitating development and economic growth rather than emphasizing resource conservation and sustainability (Firdos & Yazdani, 2024). Considering the need for a viable long-term strategy for India, careful raw material diplomacy and sustainable green transition remains crucial. Sustainable development for green transition essentially means incorporating SDG 7 (Affordable & Clean Energy), SDG 9 (Industry, Innovation & Infrastructure)  and SDG 12 (Responsible Consumption & Production) through the entire process of utilizing energy. By leveraging global supply chains, implementing robust domestic policies, and making strategic long-term investments in the energy sector, India can enhance resource governance and accelerate its green transition.

Policy Recommendations:

• Implement low-carbon extraction technologies:

  Traditional mining is environmentally destructive due to deforestation, water pollution, carbon emissions. The utilization of AI-driven mineral mapping and deep-sea mining alternatives should be explored to reduce emissions in the extraction process.

• Ensuring Local-Development:

  There is a vast displacement of indigenous communities due to large-scale extraction without providing substantial livelihood opportunities. The risk of “resource colonialism“ by relying on Africa & Latin America without ensuring fair trade & labour rights must be tackled ethically through equitable sharing of benefits. The European Conflict Mineral Regulation is a crucial effort in this context (European Commission, 2021).

• Recycling critical minerals:

  It would reduce the need for mining and other environmentally harmful processes if these minerals can be derived from discarded cell phones as well as IT and energy equipment (IEA, 2023). For example, Germany’s recycling policies to reduce dependence (Bleischwitz & Perincek, 2017b). 

• Circular Economy Practices:

  India’s green energy expansion will generate massive solar panel & EV battery waste with no large-scale battery recycling infrastructure to recover lithium, cobalt, and rare earths (Ghosal, 2023). Recycling infrastructure should be strengthened through investment and incentives to reduce raw material demand and reduce e-waste generation.

• Upskilling Green Workforce:

  A critical pillar of the just energy transition will be creating a skilled workforce; government estimates indicate that India has the potential to create around 35 million green jobs by 2047 (Skill Council for Green Jobs, 2022). This opportunity has to be efficiently implemented through inclusive and targeted plans.

• Strengthening Fair Trade Regulations:

  ‘Fair-trade minerals’ and Sustainable mining certification system could be developed for ethical Indian governance in line with the Environmental, Social and Governance (ESG) Standards. Towards Sustainable Mining (TSM) standard by the Mining Association of Canada is a globally recognized sustainability program that supports mining companies in managing key environmental and social risks (Mining Association of Canada,2024).

• Japan-India Collaboration:

  This collaboration would be a win-win situation for both as Japan is a country that is too resource dependent and India ranks 5th in world for its REE (Rare Earth Elements) reserves (Rare-Earth Reserves by Country, n.d.). Industrial collaboration for extraction and value addition can provide India with much needed technology. For example, Germany-Chile partnership (Bleischwitz & Perincek, 2017).

• Mitigate Chinese dominance:

  Due to Chinese dominance in REE supply it has the ability to bring down global prices by flooding the global market, a situation called catch-22 (Dadwal, 2020). Hence, private companies are wary of investing in REE. Hence, both governments and the private sector must commit large sums of capital to build the requisite facilities that can compete with China.

Conclusion:

As the energy landscape shifts, our focus to enable ethical and responsible development comes at the forefront. Aligning with the long-term needs and values, Indian raw material diplomacy should lead a green transition that promotes sustainable development through both means and ends rather than producing new emissions or human exploitation in its process.

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