India is preparing to set up a strategic reserve of critical minerals to safeguard its defence manufacturing sector from sudden supply shocks, a senior defence ministry official said on Saturday.
Rajesh Kumar Singh, a top Ministry of Defence official, announced the plan at a Business Standard media event in New Delhi, marking the first public confirmation of such an initiative. He said the reserve would be used to “tide over immediate requirement” in times of crisis.
Importance for Defence Preparedness
Critical minerals are essential for producing advanced military hardware, including missiles, aircraft, radars, and warships. Any disruption in their availability could severely weaken defence readiness.
“India does have reasonable stocks of critical minerals by all accounts and we should be able to better utilize in the future,” Singh noted.
China’s Export Controls Trigger Push
The move comes after China, which dominates 90% of global rare-earth magnet production, imposed export restrictions earlier this year. Those curbs disrupted global supply chains, hitting industries from defence to electric vehicles and wind turbines. Although Beijing has since relaxed some controls, its earlier use of market power has pushed many nations to secure alternative sources.
Policy Push for Self-Reliance
India has already taken steps to strengthen domestic access to critical minerals:
- Earlier this month, the government classified rare earth mines as “strategic projects”, easing environmental clearances and accelerating mining approvals.
- In July, the Union Cabinet approved a ₹1,500 crore incentive scheme to promote recycling of critical minerals from used batteries and e-waste, Bloomberg reported.
These measures aim to reduce reliance on imports and build a more secure, long-term supply chain for industries vital to both national security and economic growth.
Strategic Context
With defence modernisation a key priority and global supply chains increasingly vulnerable to geopolitical tensions, India’s decision to create a reserve aligns it with other major economies that have already set up similar stockpiles.
