India's Push for South-South Ties: Breaking China's Critical Minerals Grip

In his address at the 16th session of the United Nations Conference on Trade and Development (UNCTAD), Goyal said: "We believe global South-South cooperation converted into concrete action can provide genuine and long lasting solutions in several areas of current concern like the critical minerals problem or the problems of adequate supply of fertilisers that many nations in the world are confronted with."

The minister’s comment comes against the backdrop of China’s dominance over rare earth elements used to manufacture electric vehicles, mobile phones, other electronic goods and defence hardware. The communist giant has imposed restrictions on the supply of these crucial inputs, which have disrupted supply chains worldwide.

The minister also highlighted critical global challenges. These erode trust in multilateral institutions and the rules-based trading system. Issues include non-market practices, tariff and non-tariff barriers, and over-concentration of supply chains at the source and demand sides.

Other challenges include dilution of special and differential treatment and unilateral environmental measures, apart from the technological divide with restrictive controls. Restrictive policies have hit the services sector. In this, developing countries suffer the most, and there is a need for the Global South to speak with one voice, he observed.

Goyal underscored India's vision of a rules-based multilateral system that fosters mutual prosperity, resilience and inclusive growth for all nations.

He further stated that India is a pioneer, trusted by the developing countries and developed world alike, for its independent policies, growth, and commitment to progress. UNCTAD can play a key role in harnessing trade for equitable, inclusive, sustainable development, he said, as he offered support to developing nations in technology, cooperation and building resilient supply chains.

Goyal underlined India’s sustainability leadership. Half its installed power capacity comes from renewables. Current clean energy stands at 250 GW, with the aim to install 500 GW by 2030. India is taking measures against climate change impacts. Yet it contributes only 3.5 per cent to global emissions despite hosting 17 per cent of the world’s population. He noted that developed countries have not fulfilled Paris commitments, including in providing $100 billion in low-cost, long-tenure finance and technology transfers. He rejected burden-shifting or environmental trade barriers.

Stressing a dedicated approach to sustainable development, he said that this includes tailored, actionable solutions. Key global initiatives feature the Coalition for Disaster Resilient Infrastructure, International Solar Alliance, and Global Biofuels Alliance, building partnerships.

On the sidelines of the conference, Goyal held a bilateral meeting with the European Commission for Clean, Just and Competitive Transition's Executive Vice President Teresa Ribera Rodriguez. He discussed the impact of the Carbon Border Adjustment Mechanism (CBAM) on Indian exports, especially the steel sector and ensuring that the clean transition does not create dependencies.

In his meeting with UNCTAD Secretary General Rebecca Grynspan, the emphasis was on advancing UNCTAD's role in equitable economic transformation, the deficiency in meeting the Paris Agreement commitments by developed countries, unjustified unilateral measures, and South-South cooperation.

- IANS