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India-US-France Seek Alternative Critical Minerals Supply Chain to Counter China's 90% Processing Dominance

EconomyIntl. RelationsInfrastructureHIGH
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
19 Feb 2026
~2 min
Source: Indian Express
Key Data:90% (China's processing share)24 minerals (with duty exemptions)4 states (for processing plants)41 agencies (funded by NMET)
Bodies:Ministry of MinesFICCINMET
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What This Article Covers

1.India is discussing a multilateral alternative supply chain for critical minerals with the US, France, and other nations to reduce dependence on China.

2.Key policy measures include customs duty exemptions for 24 minerals, the REPM scheme, and promoting processing plants in Andhra Pradesh, Odisha, Gujarat, and Maharashtra.

3.This is a strategic economic and geopolitical move, connecting to India's participation in the US-led FORGED initiative and funding via NMET for domestic and overseas exploration.

The Big Picture
Prelims · HighMains · Medium

India is initiating strategic talks with the US, France, and a 'group of countries' to create an alternative supply chain for critical minerals, aiming to break China's near-monopoly (90% global processing). This move aligns with the US-led FORGED initiative and involves domestic policy measures like customs duty exemptions and identifying four states for processing hubs.

Exam Lens

Quick Exam Facts From News

Countries Discussing Supply ChainUS, France, Canada, 'Group of Countries'
China's Global Processing Share90%
Critical Minerals with Duty Exemptions24 minerals
States Identified for Processing PlantsAndhra Pradesh, Odisha, Gujarat, Maharashtra
Private Agencies Funded by NMET41 agencies

1-Minute Revision

  • ›Countries Discussing Supply Chain: US, France, Canada, 'Group of Countries'
  • ›China's Global Processing Share: 90%
  • ›Target this Data: China controls nearly 90% of global critical mineral processing capacity.
  • ›Target this Nodal Body: The Ministry of Mines is the nodal ministry for this initiative.
  • ›Target this Policy: Customs duty exemptions have been granted for 24 critical minerals.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry/department is primarily responsible for India's critical minerals strategy as mentioned in the news?

Q2Statement-basedMedium

Consider the following statements regarding India's critical minerals strategy:

1. India is in talks with the US, France, and Canada to create an alternative supply chain.

2. The government has identified six states for promoting critical mineral processing plants.

3. China controls nearly 90% of global critical mineral processing capacity.

Which of the statements given above is/are correct?

Q3Data-centricEasy

According to the news, how many critical minerals have been granted customs duty exemptions?

Q4Application/ImpactMedium

What is the primary strategic objective behind India's initiative to build an alternative critical minerals supply chain?

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