High-exploration costs, fragmented geological data and limited availability of risk capital are restricting new mineral discoveries.  | Photo Credit: Supratim Bhattacharjee

India’s critical-mineral import dependence is rising, says a new NITI Aayog report. Over the past two decades, annual global trade in energy-related critical minerals has surged from $53 billion in 2002 to $378 billion in 2024, the report said.

The report also noted that zero-duty imports of nickel-based superalloy bars and rods, despite domestic manufacturing capabilities, contribute to import dependence and the under-utilisation of investments in the domestic sector, among other factors.

The trade watch quarterly report said the growing dependence comes as demand for critical minerals is expected to rise sharply with the expansion of electric vehicles, battery storage, renewable energy and other clean-energy technologies.

Import dependence

India’s import dependence for copper stands at 57 per cent, while the country is fully dependent on imports for nickel, lithium and cobalt, said the report. The report estimates cumulative demand for nickel at 11,543 kilotonnes (kt) between 2025 and 2070, while demand for lithium is projected at 5,468 kt and cobalt at 1,454 kt over the same period. 

Copper has also emerged a major pressure point. Its import value more than tripled from $3.3 billion in 2015 to $11.8 billion in 2025, while import volumes more than doubled, according to the figures cited in the assessment.

Key challenges

The report said India’s critical-mineral supply chain faces several structural constraints, ranging from mineral exploration and mining approvals to processing, recycling, energy costs and logistics.

High-exploration costs, fragmented geological data and limited availability of risk capital are restricting new mineral discoveries. The limited participation of junior exploration companies has also constrained exploration activity.

The report said India needs greater access to geological data, risk capital and fiscal support to encourage private-sector participation and accelerate the discovery of new resources.

Delays in auctioning and operationalising lapsed mining blocks are another constraint, affecting the availability of key mineral inputs.

Mining and mineral projects also face prolonged regulatory and environmental clearances. Forest approvals, multiple scrutiny stages and delays in arranging land for compensatory afforestation can extend project timelines.

The report also flagged uncertainty created by green-cover requirements and called for streamlined approval processes, including clearer rules for brownfield expansion.

Indian metal producers face high energy, financing and logistics costs. Renewable power charges, restrictions on group-captive sourcing and limits on banking can increase the cost of low-carbon production. Delays in slurry-pipeline projects can further raise logistics costs for exporters, while tariff and quota barriers in overseas markets can increase the landed cost of Indian steel.

Published on September 16, 2026