Why metals are back in focus
According to sources aware of internal deliberations, there has been renewed emphasis on giving a “real push” to the metals sector.
Silver, copper and zinc have emerged as immediate priorities because they are critical inputs for manufacturing and where India already has a known resource base.
“The idea is to use domestic resources better, improve recovery from existing mines and bring in private players to expand capacity,” a source said.
Policymakers believe that improving copper and zinc mining will also automatically boost silver output, as silver is largely produced as a by-product.
Reducing dependence on imports
India is among the world’s largest consumers of silver, driven by its use in electronics, solar panels and electric vehicles.
Despite this, the country remains heavily dependent on imports, particularly from China, which has recently imposed curbs on exports of certain metals.
Copper presents a similar challenge. Although India has known reserves, a large share of domestic demand is met through imports.
With demand rising from power, construction and clean energy sectors, officials believe scaling up domestic copper production is unavoidable.
Greater role for private players
The upcoming mining policy is expected to encourage greater private participation by offering more mining leases and improving processing and refining capacity.
Earlier reforms had already eased exploration rules, streamlined mineral auctions and reduced entry barriers for private companies.
Rare earths: a long-term challenge
While silver, copper and zinc are seen as immediate priorities, rare earth mining is viewed as a longer-term but unavoidable goal.
Rare earth metals are essential for manufacturing electronics, batteries, electric vehicles, wind turbines and defence equipment.
Industry experts note that rare earth mining involves lengthy geological surveys, land acquisition challenges and significant environmental concerns. From prospecting to production, the process can take five to six years or more.
Environmental and capacity hurdles
Rare earth processing is particularly polluting at the refining and smelting stages, making environmental clearances and community opposition major hurdles.
Currently, India has very limited large-scale refining capacity for rare earths.
Officials acknowledge that without addressing these gaps, India’s ambition to move beyond assembly-led manufacturing will remain constrained.
Why the policy matters
A comprehensive mining policy fits into the government’s broader strategy of strengthening domestic manufacturing and reducing vulnerability to global shocks.
With China tightening control over certain metals, India’s dependence on imports poses both economic and strategic risks.
By starting with silver, copper and zinc, and gradually preparing the ground for rare earths, policymakers hope to build an integrated industrial ecosystem.
The goal is to move from importing raw materials to producing finished products domestically.
