Lithium, cobalt, and rare earths among others affected. Measure is intended to boost the domestic economy and accelerate the transition to clean energy.
The Indian government wants to lift import duties on 25 critical minerals such as lithium and rare earths, crucial for the energy and transportation transition. The aim is to promote the processing of these raw materials and ensure their availability for important sectors such as renewable energies and aerospace. This was announced by the country’s Finance Minister, Nirmala Sitharaman, on Tuesday at the presentation (PDF) of the new budget.
In order to reduce the production costs for steel and copper, the basic customs duties for the primary products ferronickel and blister copper are also to be abolished. Reductions in customs duties on gold, silver, and platinum are planned, in order to increase added value in domestic jewelry production.
Promoting Domestic Mining, Recycling, and Raw Material Extraction in the Deep Sea
India’s government also wants to set up a “mission for critical minerals” to expand their domestic production and recycling, but also to acquire corresponding projects overseas. The mining of minerals in the deep sea is another part of India’s raw materials strategy, and the first mining rights are now to be auctioned after exploration work has already been carried out.
A year ago, India published its first list of critical minerals that are considered crucial for economic development and national security. At present, most of these materials are imported, but more domestic production and investment abroad are intended to help reduce dependency. The focus here is particularly on the neighboring country of China; the relationship with India is partly characterized by territorial conflicts and economic competition. This year’s economic survey of India (PDF) also emphasizes the risks of dependence on China and highlights the People’s Republic’s near-monopoly in the production and processing of rare earths.
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