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  • What is Stargardt Disease?

    Why in the News?

    Researchers have created a gene-editing tool to fix ABCA4 gene mutations, offering hope for treating Stargardt disease, a rare condition that causes progressive vision loss.

    What is Stargardt Disease?

    • Stargardt Disease is a rare inherited eye disorder that causes progressive vision loss, primarily affecting the central part of the retina, called the macula.
    • It is typically caused by mutations in the ABCA4 gene, which disrupts the body’s ability to use Vitamin A, leading to an excessive buildup of lipofuscin (yellowish-brown pigment) in retinal cells.
    • The disease commonly begins in childhood or early adulthood and is usually bilateral, involving both eyes.
    • Currently, there is no cure for Stargardt Disease.

    Symptoms of Stargardt Disease

    • Progressive vision loss, particularly affecting central vision.
    • Difficulty seeing in low light (night blindness).
    • Blurred or distorted vision, with colors appearing less vivid.
    • Appearance of dark spots or areas of vision loss in the central visual field.
    • Gradual deterioration of visual acuity, leading to potential legal blindness.

    Present Scenario in India

    • According to a 2023 study by L.V. Prasad Eye Institute, Hyderabad:
      • The disease predominantly affects males and typically manifests during the second decade of life.
      • Estimated prevalence: 1 in 8,000 to 10,000 individuals.
      • 10.79% of patients had a family history of Stargardt disease, while 10.69% were from consanguineous marriages.
    • In India, Stargardt disease is a not uncommon hereditary condition, with limited treatment options available.
  • With 7 fresh members from Africa, Global Plastic Action Partnership expands to 25 countries: WEF

    Why in the News?

    The Global Plastic Action Partnership (GPAP), an initiative of the World Economic Forum, has reached a significant milestone by expanding its network to include 25 countries.  This expansion introduces seven new members: Angola, Bangladesh, Gabon, Guatemala, Kenya, Senegal, and Tanzania, which together represent a population of more than 1.5 billion people.

    What is the Global Plastic Action Partnership (GPAP)?

    • The Global Plastic Action Partnership (GPAP) is an initiative launched by the World Economic Forum aimed at combating plastic pollution worldwide.
    • It focuses on promoting a circular economy for plastics, emphasizing reuse, recycling, and sustainable management to mitigate the environmental impacts of plastic waste.

    What are the key components of GPAP?

    • Governance and Structure: GPAP operates through a robust governance framework consisting of a Governing Council, Steering Board, and Advisory Committee, involving senior executives from founding organisations such as the World Economic Forum.
      • For example, in Indonesia, the governance structure facilitated the creation of the National Plastic Action Partnership (NPAP), which oversees the implementation of strategies to reduce marine plastic leakage.
    • National Action Roadmaps: GPAP collaborates with various stakeholders to create National Action Roadmaps tailored to specific countries.
      • For instance, Vietnam’s National Plastic Action Partnership launched its roadmap in 2022, targeting a 50% reduction in plastic waste by 2030 through strategies.
    • Investment Mobilization: GPAP focuses on aligning financial resources with plastic waste reduction goals. For example, in Ghana, GPAP worked with the government and private sector to attract investments for waste recycling infrastructure.
    • Global Collaboration Network: GPAP acts as a platform connecting stakeholders globally to address plastic pollution.
      • For example, it facilitated the sharing of best practices between countries like Indonesia and Ghana, allowing them to adopt innovative solutions such as advanced recycling technologies and extended producer responsibility (EPR) frameworks.

    What is the significance of expanding GPAP to include seven new African countries?

    • Strengthened Global Coalition: With this expansion, GPAP now encompasses 25 countries representing over 1.5 billion people, making it the largest global initiative focused on combating plastic pollution.
    • Addressing Urgent Environmental Challenges: The inclusion of these countries underscores a growing recognition of the urgent need to tackle plastic pollution, which poses severe threats to ecosystems, biodiversity, and human health.
    • Fostering Regional Collaboration: The addition of new African countries facilitates regional collaboration and knowledge sharing on best practices for waste management and recycling.
    • Economic Growth and Job Creation: GPAP’s initiatives are expected to stimulate economic growth through the promotion of sustainable materials and recycling infrastructure.
    • Commitment to Circular Economy Principles: The expansion reflects a commitment to advancing circular economy principles, which focus on reusing and recycling plastics rather than relying on single-use materials.

    What are the anticipated environmental and economic impacts of GPAP’s initiatives?

    • Decreased Greenhouse Gas Emissions: The initiative targets a reduction in greenhouse gas emissions associated with plastic production and waste management, which currently accounts for an estimated 1.8 billion tonnes annually. By promoting a circular economy, GPAP aims to mitigate emissions, particularly methane from landfills.
      • By implementing National Action Roadmaps, the partnership seeks to reduce annual land-based plastic leakage by approximately 80% by 2040 compared to business-as-usual scenarios.
      • By transitioning to a circular economy model, GPAP initiatives can help countries recover lost economic value from plastics, estimated at $80 billion to $120 billion annually due to inefficiencies in current systems.
    • Job Creation: GPAP’s efforts in developing sustainable waste management practices are expected to create significant employment opportunities, potentially generating up to 6 million green jobs globally by 2030. This includes safer jobs for informal waste workers who play a crucial role in recycling and waste management.
    • Investment Mobilization: The partnership has already mobilized substantial investments, such as $3.1 billion, aimed at supporting projects that tackle plastic waste. This influx of capital can stimulate local economies and drive innovation in sustainable materials and recycling technologies.

    Way forward: 

    • Strengthen Policy Frameworks and Partnerships: Collaborate with governments, private sectors, and civil society to establish robust policies to enforce regulations and promote extended producer responsibility (EPR) frameworks to drive systemic change.
    • Enhance Innovation and Infrastructure: Invest in advanced recycling technologies for scalable waste management infrastructure and research to develop sustainable alternatives, fostering a circular economy while creating green jobs and reducing plastic pollution.

    Prelims PYQ:

    In India, ‘extended producer responsibility’ was introduced as an important feature in which of the following ? (UPSC IAS/2019)

    (a) The Bio-medical Waste (Management and Handling) Rules, 1998

    (b) The Recycled Plastic (Manufacturing and Usage) Rules, 1999

    (c) The e-Waste (Management and Handling) Rules, 2011

    (d) The Food Safety and Standard Regulations, 2011

  • NITI Aayog releases Fiscal Health Index, 2025

    Why in the News?

    The NITI Aayog has launched the Fiscal Health Index (FHI), 2025 to provide a comprehensive assessment of the fiscal performance of 18 major states in India.

    What is the Fiscal Health Index (FHI)?

    • The FHI is an initiative by NITI Aayog to analyze the fiscal health of states and guide reforms for sustainable economic growth.
    • It evaluates states using a composite index derived from five key sub-indices:
    1. Quality of Expenditure
    2. Revenue Mobilization
    3. Fiscal Prudence
    4. Debt Index
    5. Debt Sustainability
    • The report uses data from the Comptroller and Auditor General of India (CAG) for the fiscal year 2022-23, supplemented by trends from 2014-15 to 2021-22.
    • FHI covers states contributing significantly to India’s GDP, demographics, public expenditure, and revenues.

    Key Highlights:

    • Top Performers:
      • Odisha: Ranked first (67.8), excelling in debt management and sustainability.
      • Chhattisgarh: Secured second position (55.2), showcasing strong fiscal prudence.
      • Goa: Achieved third place (53.6), reflecting balanced fiscal practices.
    • Underperformers:
      • Kerala: (29.7), struggling with poor debt sustainability and expenditure quality.
      • Punjab: (28.4), grappling with low revenue mobilization and high deficits.
      • West Bengal: (27.8), facing challenges in debt index and fiscal management.
      • Andhra Pradesh: (26.9), hindered by high fiscal deficits.
    • Regional Insights:
      • Southern States: Telangana leads (47.5), while Tamil Nadu (30.2), Kerala (29.7), and Andhra Pradesh (26.9) lag.
      • Developmental Expenditure: Top states allocate up to 73% of total expenditure to growth-focused activities.

    Significance

    • Promotes fiscal discipline through data-driven insights.
    • Guides state-specific reforms to address disparities.
    • Encourages healthy competition among states.
    • Supports cooperative federalism, aligning with “Viksit Bharat @2047”.
    • Tracks fiscal health annually to ensure continuous improvement.

    PYQ:

    [2015] The Government of India has established NITI Aayog to replace the (2015)

    (a) Human Rights Commission

    (b) Finance Commission

    (c) Law Commission

    (d) Planning Commission

  • India to launch first Human Underwater Submersible (Deep-Sea Manned Vehicle)

    Why in the News?

    India is set to launch its first human underwater submersible (deep-sea manned vehicle) in 2025, marking a significant achievement in the country’s scientific and technological journey.

    About the Submersible:

    • The submersible will initially operate at a depth of 500 meters, with the goal of reaching a depth of 6,000 meters by next year.
    • Part of the Deep Ocean Mission, the initiative focuses on exploring untapped underwater resources and advancing India’s blue economy.
    • The submersible is being developed using 100% indigenous technology, demonstrating India’s commitment to self-reliance in advanced science and innovation.
    • The mission aims to unlock vast underwater resources, including: Critical minerals, Rare metals and undiscovered marine biodiversity.

    About the Deep Ocean Mission (DOM):

    • DOM is an ambitious initiative by the Ministry of Earth Sciences (MoES) approved in 2021 to develop technologies for deep-sea exploration.
    • Part of the 9 missions under the Prime Minister’s Science, Technology, and Innovation Advisory Council (PMSTIAC).

    Important updates in DOM: Samudrayaan and Matsya6000:

    • Launched in 2021 under DOM, Samudrayaan is India’s flagship crewed expedition to reach a depth of 6,000 m in the Central Indian Ocean.
    • The mission will utilize Matsya6000, a deep-ocean submersible designed for a three-member crew.
      • Construction: Made from titanium alloy to endure pressures up to 6,000 bar.

    India’s Ocean Exploration Milestones:

    • 1981: Ocean studies began with a program on polymetallic nodules (PMN) initiated at CSIR-NIO, marked by the collection of the first nodule sample from the Arabian Sea aboard the research vessel Gaveshani.
    • 1987: India became the first country to receive Pioneer Investor status from the International Seabed Authority (ISA).
      • Allocated 1.5 lakh km² in the Central Indian Ocean Basin (CIOB) for nodule exploration, based on extensive surveys by CSIR-NIO.
    • 2002: India signed a contract with the ISA; after resource analysis, surrendered 50% of the allotted area, retaining 75,000 km².
    • Further studies narrowed the mining area to 18,000 km², identified as the First Generation Mine-site.
  • India becomes largest importer of Tea from Kenya

    Why in the News?

    India, the world’s second-largest tea producer after China, has become the largest importer of tea from Kenya, signaling a shift in global tea trade dynamics.

    Key Highlights of Tea Trade

    • Imports surged from 3.53 million kg in 2023 to 13.71 million kg in 2024, reflecting a significant 288% increase.
    • The average price of Kenyan tea imported to India was ₹156.73 per kg, significantly lower than ₹252.83 per kg fetched by Assam tea at auctions up to October 2024.
    • India’s tea exports increased by 13%, rising from 184.46 million kg in 2023 to 209.14 million kg in 2024.
    • Assam and West Bengal were major contributors to exports, accounting for the bulk of the tea exported.

    About Tea Board of India

    • The Tea Board of India was established in 1954 under the Tea Act, 1953, succeeding the Central Tea Board and Indian Tea Licensing Committee.
    • It was originally formed under the Indian Tea Cess Bill (1903) to promote Indian tea domestically and internationally.
    • It is headquartered in Kolkata, with 23 offices across India, including zonal, regional, and sub-regional offices.
    • It functions as a statutory body under the Ministry of Commerce and Industry, with 31 members, including representatives from Parliament, tea producers, traders, and trade unions.
    • Provides financial and technical assistance for tea cultivation, manufacturing, and marketing, supports R&D to improve tea quality, and monitors pesticide residue compliance.

    Tea Crop in India

    • Under the Treaty of Yandabo (1826), the East India Company gained control of Assam, laying the foundation for India’s commercial tea industry.
    • The British finally introduced tea to India in the 19th century to compete with China’s monopoly, establishing the first commercial tea garden in Chabua, Assam, in 1837.
    • Tea requires 20°C–30°C temperatures and 150–300 cm annual rainfall with slightly acidic, well-drained soil for optimal growth.
    • India is the second-largest tea producer globally and the largest consumer, accounting for 30% of global tea consumption, with major production in Assam, West Bengal, Tamil Nadu, and Kerala.

     

    PYQ:

    [2022] With reference to the “Tea Board” in India, consider the following statements:

    1. The Tea Board is a statutory body.
    2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
    3. The Tea Board’s Head Office is situated in Bengaluru.
    4. The Board has overseas offices at Dubai and Moscow.

    Which of the statements given above are correct?

    (a) 1 and 3

    (b) 2 and 4

    (c) 3 and 4

    (d) 1 and 4

  • In news: Vaigai River

    Why in the News?

    The Madras High Court has issued directives to local bodies in Madurai, Theni, Dindigul, Sivaganga, and Ramanathapuram districts to submit a comprehensive action plan with timelines to mitigate pollution in the Vaigai River.

    About Vaigai River

    Geographical Features and Location
    • Originates from the Varusanadu Hills in the Western Ghats, Tamil Nadu.
    • Flows through Madurai, Theni, Dindigul, Sivaganga, and Ramanathapuram districts.
    • Length: Approximately 258 km, draining into the Palk Strait.
    • Major towns along the river include Madurai.
    • Historical site Keeladi is also located along the river.
    Major and Minor Tributaries
    • Major Tributaries: Suruliyar River, Varaha River, Manjalar River, Kottagudi River, and Kridhumaal River.
    • Minor Tributaries: Sambanadi River, Kumilaar River, and Utharakosa Mangaiyar River.
    Conservation Sites and Programs
    • Srivilliputhur Megamalai Tiger Reserve: Acts as a vital catchment area and supports biodiversity.
    • Vaigai Dam: Built near Andipatti, providing irrigation and drinking water.
    • Vaigai River Restoration Program: Focuses on cleaning, improving water quality, and promoting biodiversity.

    In news: Vaigai River

    PYQ:

    [2021] Which one of the following statements is correct?​

    (a) Ajanta Caves lie in the gorge of Waghora river.​

    (b) Sanchi Stupa lies in the gorge of Chambal river.​

    (c) Pandu-lena Cave Shrines lie in the gorge of Narmada river.​

    (d) Amaravati Stupa lies in the gorge of Godavari river.​

  • Commerce Ministry sets a target of 10000 GI tags by 2030

    Why in the News?

    Union Minister of Commerce & Industry has announced an ambitious target to achieve 10,000 Geographical Indication (GI) tags by 2030.

    About Geographical Indications (GI) Tags

    • A GI is a sign identifying a product as originating from a specific geographical location, possessing qualities, reputation, or characteristics inherently linked to that origin.
    • It is governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999, effective from September 2003.
    • It is defined under Article 22(1) of the WTO’s TRIPS Agreement.
    • It is managed by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
    • GI tags are valid for 10 years and can be renewed upon expiry.
    • Darjeeling Tea was the first product to receive a GI tag in 2004–05.
    • Purpose and Benefits:
      • Protects the identity of unique products linked to specific regions.
      • Promotes economic development, cultural preservation, and export potential.

    Procedural Implementation and Recognition of GI’s:

    • Authority for GI Tags:
      • The Controller-General of Patents, Designs and Trade Marks, under the Trade Marks Act, 1999, serves as the Registrar of Geographical Indications.
      • The register for GIs is divided into:
    1. Part A: Registration of GIs.
    2. Part B: Registration of authorized users.
    • Application Process:
      • Applications can be made by individuals, associations of persons, producers, or authorized organizations representing the producers’ interests.
      • Applications must include details about the product’s quality, nature, reputation, geographical environment, manufacturing process, natural and human factors, and a map of the production territory.
    • Scrutiny and Decision:
      • The Registrar conducts a preliminary review for deficiencies, with applicants given one month to address any issues.
      • Accepted applications are advertised in the GI Journal, inviting objections.
      • If unopposed, a certificate of registration is granted.
    • Timeframe:
      • Registration must be completed within 12 months; otherwise, the Registrar may abandon the application after notifying the applicant.

    PYQ:

    [2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

    1. Banaras Brocades and Sarees

    2. Rajasthani Daal-Bati-Churma

    3. Tirupathi Laddu

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 only 3 only

    (d) 1, 2 and 3

  • What is Keeling Curve?

    Why in the News?

    Atmospheric CO₂ levels hit a record high in 2024 due to wildfires and human activities, as shown by the Keeling Curve, a 67-year record maintained at Mauna Loa Observatory since 1958.

    What is Keeling Curve?

    What is Keeling Curve?

    • The Keeling Curve is a long-term record of atmospheric CO concentrations, initiated by Charles David Keeling in 1958 at the Mauna Loa Observatory, Hawaii.
    • It tracks the rise in CO levels and provides evidence of the impact of human activities on climate change.
    • Named after Charles David Keeling, it has become a globally recognized tool for understanding global warming.

    Significant Features and Sources:

    • Steady Upward Trend: Demonstrates a consistent rise in atmospheric CO₂ levels since 1958, primarily due to fossil fuel combustion and deforestation.
    • Seasonal Fluctuations:
      • CO₂ levels decrease during spring and summer as plants absorb CO₂ through photosynthesis.
      • Levels increase during fall and winter when plant decay releases CO₂.
    • Initial Measurements: Recorded CO₂ levels at 315 ppm in 1958.
    • Current Levels: As of January 2025, CO₂ concentrations have reached 427.1 ppm, the highest in millions of years.
    • Data Sources: Measurements are taken from Mauna Loa Observatory and other global monitoring stations.

    Observations around the Curve

    • Key Milestones:
      • 1988: CO₂ levels reached 350 ppm, drawing global attention to climate change.
      • 2023: Levels exceeded 420 ppm, marking a critical point in atmospheric history.
      • 2024: Record growth of 3.58 ppm in average annual CO₂ concentrations compared to 2023.
    • Contributing Factors:
      • El Niño: Surface temperature rise in the Pacific Ocean boosted CO₂ emissions during 2024, exacerbated by wildfires in North and South America.
      • Anthropogenic Emissions: Burning fossil fuels and land-use changes remain major contributors.
    • Global Implications:
      • Contradicts IPCC scenarios for limiting global warming to 1.5°C, as emissions continue to rise.
      • Record increases in CO₂ levels during El Niño events highlight the interplay between natural phenomena and human activities.

    PYQ:

    [2011] Consider the following:

    1. Photosynthesis

    2. Respiration

    3. Decay of organic matter

    4. Volcanic action

    Which of the above add carbon dioxide to the carbon cycle on Earth?

    (a) 1 and 4 only

    (b) 2 and 3 only

    (c) 2, 3 and 4 only

    (d) 1, 2, 3 and 4

  • [23rd January 2025] The Hindu Op-ed: China’s moves must recast India’s critical minerals push

    PYQ Relevance:

    Q) Discuss the multi-dimensional implications of uneven distribution of mineral oil in the world. (UPSC CSE 2021)

    Mentor’s Comment: UPSC mains have always focused on Chinese dominance in Geopolitics (2024) and Mines and Minerals in Indian Economy (2021 & 2022).

     

    Despite having the fifth-largest reserves of rare earths globally, India currently lags in all stages of rare earth development. India heavily relies on China for critical minerals, with significant import percentages for essential resources such as lithium (82%), bismuth (85.6%), and silicon (76%). This dependency poses risks to India’s economic security. The International Energy Agency predicts that demand could double by 2030 and quadruple by 2040.

     

    Today’s editorial emphasizes the challenges posed by the Critical Mineral industry at national and Global level. This content can be used for presenting the challenges in the Indian Economy with respect to Critical Mines and Minerals and Trade issues.

    _

    Let’s learn!

    Why in the News?

    China’s recent actions (expanded its export control list by including 28 entities), including potential export restrictions, have heightened fears about India’s reliance on Chinese supplies of critical minerals like lithium, cobalt, and rare earth elements.

    • China controls a substantial portion of the global supply of critical minerals, producing about 60% of rare earth elements, 50% of lithium, and 70% of cobalt.
    • This dominance extends to processing, where China handles approximately 80% of the world’s critical mineral processing, allowing it to influence global prices and availability significantly.

    What are the implications of China’s dominance in the critical minerals supply chain for India’s Economic Security?

    • Supply Chain Vulnerability: India’s heavy reliance on Chinese imports for critical minerals like lithium and cobalt creates significant risks, as China’s control over a large share of global production and processing capacity could lead to supply disruptions or price increases.
    • Geopolitical Leverage: China’s ability to restrict access to critical minerals during geopolitical tensions poses a direct threat to India’s energy transition and economic stability, potentially hindering its renewable energy goals.
    • Need for Strategic Diversification: In response to these challenges, India must pursue strategic partnerships with resource-rich countries and invest in domestic mineral exploration and processing capabilities to reduce dependence on China.
    • Global Competition and Sustainability: As global competition for critical minerals intensifies, India must balance its pursuit of resource independence with sustainable mining practices, ensuring long-term availability while addressing environmental concerns.

     

    What are the key challenges in developing India’s domestic critical mineral production?

    • Limited Exploration and Development: Complex geology, lack of advanced exploration technologies, and regulatory hurdles slow down the discovery and commercial extraction of resources like lithium and cobalt.
    • Processing Capacity Gaps: India lacks sufficient domestic processing and refining facilities for critical minerals. This gap forces the country to depend on foreign processing.
    • Regulatory and Policy Constraints: Existing regulations reserve certain critical minerals for public sector undertakings, limiting private sector participation in exploration and mining.
      • Additionally, the need for an updated list of critical minerals in the Mines and Minerals (Development and Regulation) Act hampers timely exploration efforts.
      • Establishing new exploration and processing activities involves long gestation periods, which can delay India’s efforts to become self-reliant in critical minerals.
    • Skilled Workforce Shortage: There is a shortage of skilled manpower in the materials, minerals, and metals sectors due to gaps in specialized training and advanced skills development.
    • Environmental Concerns: Mining activities can lead to significant environmental degradation, including biodiversity loss, water depletion, and pollution. Addressing these concerns while developing mineral resources poses a challenge for sustainable practices.

    How can India effectively reduce its dependency on Chinese imports for critical minerals?

    • Domestic Exploration and Production: India is focusing on enhancing its domestic mining capabilities by identifying and exploring critical mineral reserves within its territory.
      • For Example, the recent discoveries of lithium deposits in states like Jammu and Kashmir, Rajasthan, and Karnataka highlight the potential for self-reliance in critical minerals essential for renewable energy technologies.
    • Critical Minerals Mission: Government has launched a Critical Mineral Mission aimed at securing domestic production, recycling, and overseas acquisition of critical minerals.
      • This mission includes incentives for private companies to establish processing facilities and aims to reduce import duties on key minerals, thereby promoting local processing and refining.
    • International Partnerships: India is actively seeking to forge strategic partnerships with resource-rich countries, particularly in Africa and Latin America, to secure mineral blocks through government-to-government agreements.
      • This includes investments in countries like Australia, Chile, Ghana, and South Africa to diversify supply sources and mitigate risks associated with over-reliance on China.
    • Regulatory Reforms and Investment: The Indian government is implementing regulatory reforms to attract private investment in the critical minerals sector.
      • This includes auctioning critical mineral blocks to both state-owned and private companies, establishing entities like Khanij Bidesh India Ltd. (KABIL) for overseas acquisitions, and enhancing the National Mineral Exploration Trust (NMET) to support exploration efforts.

    Key Significant Features of the Mines and Minerals (Development and Regulation) Amendment Act, 2023 

    • Private Sector Involvement: The amendment allows the private sector to explore and mine six critical minerals previously restricted to state agencies, including lithium, beryllium, niobium, titanium, tantalum, and zirconium. This shift encourages private investment and expertise in the mining sector.
    • Exploration Licenses (EL): The introduction of Exploration Licenses enables private companies to conduct reconnaissance and prospecting for critical minerals. This is expected to attract foreign direct investment (FDI) and engage junior mining companies, thereby boosting exploration efforts for deep-seated minerals.
    • Exclusive Auctions for Critical Minerals: The central government is empowered to auction mineral concessions for critical minerals such as rare earth elements, cobalt, and nickel. This streamlined auction process is designed to accelerate production and generate revenue for state governments.
    • Revenue-Sharing Mechanism: If resources are proven after exploration, the state government must conduct an auction for mining leases within six months. The exploration licensee will receive a share in the auction value of the subsequent mining lease, incentivizing exploration activities.

    What role do global market dynamics play in shaping India’s critical mineral policies?

    • Geopolitical Influences: The competitive landscape of critical minerals is heavily influenced by geopolitical tensions, particularly with China, which dominates the supply chain.
      • India’s policies need to be increasingly designed to mitigate reliance on Chinese imports by fostering partnerships with countries like the U.S., Australia, and members of the Quad, aiming for a more diversified and secure supply chain.
    • Investment in Domestic Capabilities: To counteract dependency on imports, India should  implement regulatory reforms to attract private investment in the mining sector.
      • This includes auctioning mineral blocks and promoting initiatives like the National Critical Minerals Mission, which aims to strengthen the entire value chain from exploration to processing.
    • Need for Strategic Sourcing: Global market fluctuations can lead to price volatility for critical minerals, prompting India to develop a carefully crafted import strategy.
      • This strategy focuses on establishing stable relationships with resource-rich nations and diversifying sourcing options to mitigate risks associated with supply disruptions.
    • Fiscal Incentives: A possible remedy is to offer larger upfront fiscal incentives during the exploration phase. In other words, pledging direct capital support early in the construction phase might be to approach critical minerals extraction as a semiconductor fabrication project.
  • [23rd January 2025] The Hindu Op-ed: China’s moves must recast India’s critical minerals push

    PYQ Relevance:

    Q) Discuss the multi-dimensional implications of uneven distribution of mineral oil in the world. (UPSC CSE 2021)

    Mentor’s Comment: UPSC mains have always focused on Chinese dominance in Geopolitics (2024) and Mines and Minerals in Indian Economy (2021 & 2022).

    Despite having the fifth-largest reserves of rare earths globally, India currently lags in all stages of rare earth development. India heavily relies on China for critical minerals, with significant import percentages for essential resources such as lithium (82%), bismuth (85.6%), and silicon (76%). This dependency poses risks to India’s economic security. The International Energy Agency predicts that demand could double by 2030 and quadruple by 2040.

    Today’s editorial emphasizes the challenges posed by the Critical Mineral industry at national and Global level. This content can be used for presenting the challenges in the Indian Economy with respect to Critical Mines and Minerals and Trade issues.

    _

    Let’s learn!

    Why in the News?

    China’s recent actions (expanded its export control list by including 28 entities), including potential export restrictions, have heightened fears about India’s reliance on Chinese supplies of critical minerals like lithium, cobalt, and rare earth elements. 

    China controls a substantial portion of the global supply of critical minerals, producing about 60% of rare earth elements, 50% of lithium, and 70% of cobalt. 

    This dominance extends to processing, where China handles approximately 80% of the world’s critical mineral processing, allowing it to influence global prices and availability significantly.

    What are the implications of China’s dominance in the critical minerals supply chain for India’s Economic Security?

    • Supply Chain Vulnerability: India’s heavy reliance on Chinese imports for critical minerals like lithium and cobalt creates significant risks, as China’s control over a large share of global production and processing capacity could lead to supply disruptions or price increases.
    • Geopolitical Leverage: China’s ability to restrict access to critical minerals during geopolitical tensions poses a direct threat to India’s energy transition and economic stability, potentially hindering its renewable energy goals.
    • Need for Strategic Diversification: In response to these challenges, India must pursue strategic partnerships with resource-rich countries and invest in domestic mineral exploration and processing capabilities to reduce dependence on China.
    • Global Competition and Sustainability: As global competition for critical minerals intensifies, India must balance its pursuit of resource independence with sustainable mining practices, ensuring long-term availability while addressing environmental concerns.
    What are the key challenges in developing India’s domestic critical mineral production?

    Limited Exploration and Development: Complex geology, lack of advanced exploration technologies, and regulatory hurdles slow down the discovery and commercial extraction of resources like lithium and cobalt.
    Processing Capacity Gaps: India lacks sufficient domestic processing and refining facilities for critical minerals. This gap forces the country to depend on foreign processing.
    Regulatory and Policy Constraints: Existing regulations reserve certain critical minerals for public sector undertakings, limiting private sector participation in exploration and mining.  Additionally, the need for an updated list of critical minerals in the Mines and Minerals (Development and Regulation) Act hampers timely exploration efforts. Establishing new exploration and processing activities involves long gestation periods, which can delay India’s efforts to become self-reliant in critical minerals.
    Skilled Workforce Shortage: There is a shortage of skilled manpower in the materials, minerals, and metals sectors due to gaps in specialized training and advanced skills development. 
    Environmental Concerns: Mining activities can lead to significant environmental degradation, including biodiversity loss, water depletion, and pollution. Addressing these concerns while developing mineral resources poses a challenge for sustainable practices.

    How can India effectively reduce its dependency on Chinese imports for critical minerals?

    • Domestic Exploration and Production: India is focusing on enhancing its domestic mining capabilities by identifying and exploring critical mineral reserves within its territory.
      • For Example, the recent discoveries of lithium deposits in states like Jammu and Kashmir, Rajasthan, and Karnataka highlight the potential for self-reliance in critical minerals essential for renewable energy technologies.
    • Critical Minerals Mission: Government has launched a Critical Mineral Mission aimed at securing domestic production, recycling, and overseas acquisition of critical minerals.
      • This mission includes incentives for private companies to establish processing facilities and aims to reduce import duties on key minerals, thereby promoting local processing and refining.
    • International Partnerships: India is actively seeking to forge strategic partnerships with resource-rich countries, particularly in Africa and Latin America, to secure mineral blocks through government-to-government agreements.
      • This includes investments in countries like Australia, Chile, Ghana, and South Africa to diversify supply sources and mitigate risks associated with over-reliance on China.
    • Regulatory Reforms and Investment: The Indian government is implementing regulatory reforms to attract private investment in the critical minerals sector.
      • This includes auctioning critical mineral blocks to both state-owned and private companies, establishing entities like Khanij Bidesh India Ltd. (KABIL) for overseas acquisitions, and enhancing the National Mineral Exploration Trust (NMET) to support exploration efforts.
    Significant Features of the Mines and Minerals (Development and Regulation) Amendment Act, 2023 

    Private Sector Involvement: The amendment allows the private sector to explore and mine six critical minerals previously restricted to state agencies, including lithium, beryllium, niobium, titanium, tantalum, and zirconium. This shift encourages private investment and expertise in the mining sector.
    Exploration Licenses (EL): The introduction of Exploration Licenses enables private companies to conduct reconnaissance and prospecting for critical minerals. This is expected to attract foreign direct investment (FDI) and engage junior mining companies, thereby boosting exploration efforts for deep-seated minerals.
    • Exclusive Auctions for Critical Minerals: The central government is empowered to auction mineral concessions for critical minerals such as rare earth elements, cobalt, and nickel. This streamlined auction process is designed to accelerate production and generate revenue for state governments.
    Revenue-Sharing Mechanism: If resources are proven after exploration, the state government must conduct an auction for mining leases within six months. The exploration licensee will receive a share in the auction value of the subsequent mining lease, incentivizing exploration activities.

    What role do global market dynamics play in shaping India’s critical mineral policies?

    • Geopolitical Influences: The competitive landscape of critical minerals is heavily influenced by geopolitical tensions, particularly with China, which dominates the supply chain.
      • India’s policies need to be increasingly designed to mitigate reliance on Chinese imports by fostering partnerships with countries like the U.S., Australia, and members of the Quad, aiming for a more diversified and secure supply chain.
    • Investment in Domestic Capabilities: To counteract dependency on imports, India should  implement regulatory reforms to attract private investment in the mining sector.
      • This includes auctioning mineral blocks and promoting initiatives like the National Critical Minerals Mission, which aims to strengthen the entire value chain from exploration to processing.
    • Need for Strategic Sourcing: Global market fluctuations can lead to price volatility for critical minerals, prompting India to develop a carefully crafted import strategy.
      • This strategy focuses on establishing stable relationships with resource-rich nations and diversifying sourcing options to mitigate risks associated with supply disruptions.
    • Fiscal Incentives: A possible remedy is to offer larger upfront fiscal incentives during the exploration phase. In other words, pledging direct capital support early in the construction phase might be to approach critical minerals extraction as a semiconductor fabrication project

    https://www.thehindu.com/opinion/op-ed/chinas-moves-must-recast-indias-critical-minerals-push/article69128387.ece