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Key Points

India is actively pursuing strategic partnerships with five Central Asian countries to explore rare earth and critical minerals. The initiative aims to reduce dependence on Chinese mineral exports and develop domestic manufacturing capabilities. During the 4th India-Central Asia Dialogue, ministers discussed expanding cooperation in multiple sectors, including digital infrastructure and financial connectivity. This collaborative approach reflects India's growing geopolitical and economic engagement in the Central Asian region.

Key Points: India Seeks Rare Earth Minerals with Central Asian Partners

  • India aims to diversify rare earth mineral supply chain
  • Developing domestic manufacturing capabilities
  • Strengthening digital and financial connectivity
  • Encouraging bilateral trade and investment
2 min read

India aims for joint rare earth mineral exploration with 5 Central Asian nations

India explores joint rare earth mineral ventures with 5 Central Asian nations to reduce China's export dependency

"Exploring new areas of cooperation in critical minerals - India-Central Asia Dialogue Ministers"

New Delhi, June 6

India and five Central Asian countries on Friday expressed interest in joint exploration of rare earth and critical minerals, as New Delhi aims to reduce dependence on shipments from China, which has curbed the exports of rare earth materials.

It was conveyed during the 4th meeting of the India-Central Asia Dialogue held in New Delhi, the Ministry of External Affairs said in a statement.

Appreciating the outcomes of the first India-Central Asia Rare Earth Forum held in September 2024 in New Delhi, the Ministers called upon the relevant authorities to hold the second India-Central Asia Rare Earth Forum meeting at the earliest convenience.

The Ministers also encouraged the exchange of delegations to explore new areas of cooperation in critical minerals.

The Indian government wants to develop domestic manufacturing capabilities and is reportedly considering offering production-based fiscal incentives to companies in the field of rare earth materials.

Meanwhile, the Ministers of Foreign Affairs of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan noted the current level of trade and investment between India and Central Asian countries and stressed the importance of making concerted efforts to realise the full potential of mutual trade, especially in sectors like pharmaceuticals, information technology, agriculture, energy, textiles, gems and jewellery, etc.

According to the MEA statement, the Ministers underlined the importance of greater financial connectivity between India and Central Asian countries, including through digital payment systems, enhanced interbank relations, and trade in national currencies to encourage greater trade, investment, tourism and people-to-people exchanges.

Recognising the important role of financial and banking linkages, the Sides also expressed interest in establishing a Joint Working Group to explore ways to further deepen banking and financial connectivity between India and Central Asian partners, according to the statement.

The Central Asian countries noted the importance of India Stack in accelerating digital transformation and providing public service delivery at scale. India agreed to provide assistance in developing Digital Public Infrastructure (DPI) in Central Asian countries.

The Ministers also agreed to establish the India-Central Asia Digital Partnership Forum and welcomed Uzbekistan’s offer to host the inaugural meeting.

—IANS

- IANS

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Reader Comments

P
Priya K.
This is a brilliant strategic move! Reducing dependence on China for rare earth minerals is crucial for our national security and Make in India initiative. Central Asia has untapped potential and we should leverage our historical ties there. Hope this partnership brings more jobs to India too 🇮🇳
R
Rahul S.
While the initiative is good, I hope we don't repeat past mistakes. The government must ensure proper environmental safeguards in mining operations. We've seen how rare earth extraction has damaged ecology in other countries. Sustainable development should be priority.
A
Anjali M.
Digital partnership with Central Asia is the real game changer here! India Stack can revolutionize their economies just like UPI did for us. Proud to see our tech solutions going global 🌍
V
Vikram J.
The pharmaceutical and IT sectors mentioned here have huge potential. Our generic medicines and software services can greatly benefit Central Asian populations. Hope the trade agreements actually materialize on ground.
S
Sanjay P.
China will not like this development one bit! They've been dominating rare earth market for decades. But we must be careful - these partnerships need strong follow-through and investment. Just signing MOUs won't be enough.
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Neha T.
Interesting to see Turkmenistan involved despite their traditional neutrality. The energy sector cooperation could be massive if we play our cards right. Maybe this will lead to cheaper gas imports too? 🤞
K
Karan D.
While the focus is on minerals, let's not forget the cultural exchange potential. Central Asia has deep historical connections with India through the Silk

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