New Delhi [India], July 6 (ANI): Collaboration between business and authorities which proved profitable in semiconductors, would be the key to addressing uncommon minerals dependencies in response to president of the Confederation of Indian Business (CII) who identified that there is no such thing as a short-term repair for the doable scarcity of rare-earth minerals.
“It is a long-term resolution,” acknowledged the CII President Rajiv Memani emphasizing on the necessity for a complete, product-led technique.
“What are the minerals which might be required for that? What’s the expertise that is required for that? What’s the coverage assist or monetary assist that that business or sector wants?” he outlined, calling for pressing motion regardless of the long-term nature of options.
Uncommon earth components (REEs) are essential in fashionable technological merchandise akin to smartphones, electrical vehicles, and superior army gear. Nations with wealthy REEs deposits have develop into pivotal gamers within the business and important components of worldwide provide chains.
The president of business physique particularly highlighted the automotive sector’s vulnerability to uncommon minerals shortages. “After I speak to car corporations, they are saying this may actually make a distinction,” he famous, emphasizing the sector’s concern about provide chain disruptions.
The CII chief outlined a strategic method for India: “India should establish the place there are main dangers of their provide chains. If it is minerals, then they should create a minerals technique – both methods to produce them right here or the place to import them from, and what assist the non-public sector wants from the federal government.”
Memani acknowledged the complexity of creating home manufacturing capabilities, citing value disadvantages in comparison with established world gamers. “Many issues are usually not viable in themselves due to the price of manufacturing – many international locations have constructed such scale that their value of manufacturing is sort of low, and so they have achieved such backend integration of their mineral assets that replicating it instantly could be very tough.”
He emphasised that authorities assist could be important, whether or not by way of coverage measures or different help to the non-public sector.
The CII President highlighted further challenges posed by regulatory frameworks, notably for radioactive minerals. “Many minerals are radioactive, and the Division of Atomic Vitality can be concerned. So typically, after speaking with them, a giant pressing technique must be made about which international locations to companion with,” he defined.
Drawing parallels with worldwide experiences, Memani cited Japan’s decade-long efforts on this sector. “For those who take a look at Japan, they’ve been engaged on this for therefore a few years. The worth addition they’ve achieved up to now is simply round 40 per cent, and so they have been at it for 10 years,” he mentioned, illustrating the time-intensive nature of constructing uncommon minerals capabilities.
Memani drew intensive comparisons with India’s semiconductor mission, positioning it as proof of the nation’s functionality to deal with complicated technological challenges. “When the semiconductor downside got here, the federal government labored on it. They introduced out a semiconductor coverage, then made some amendments, after which launched the PLI scheme with an allocation of ₹75,000 crore for 4 corporations,” he defined, highlighting the systematic method that delivered outcomes.
The CII President expressed robust confidence within the semiconductor sector’s trajectory: “I believe that regularly, because the semiconductor business develops in India, this complete ecosystem will develop in seven to eight years.”
This success story, in response to Memani, demonstrates India’s confirmed methodology for addressing strategic vulnerabilities by way of complete coverage frameworks and substantial monetary commitments.
Memani emphasised that after the ecosystem develops, it turns into a major aggressive energy for the nation. “It’s an evolving expertise. Issues carry on altering, however as soon as the ecosystem develops, then it turns into a really robust, aggressive energy {that a} nation has after they have their very own semiconductor ecosystem,” he famous.
The CII President’s feedback mirror robust confidence in India’s capacity to develop indigenous capabilities in essential sectors. His reference to the semiconductor success story serves as proof that India can systematically handle complicated provide chain challenges by way of strategic planning and sustained dedication.
“It can take a number of years. It is not like this downside will probably be solved in six months. However we’ve to start out,” Memani concluded, expressing certainty that India will overcome the uncommon minerals problem simply because it has begun conquering the semiconductor sector. (ANI)
