UPSC Prelims 2025Question 6International Relations

Consider the following statements:
I. India has joined the Minerals Security Partnership as a member.
II. India is a resource-rich country in all the 30 critical minerals that it has identified.
III. The Parliament in 2023 has amended the Mines and Minerals (Development and Regulation) Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.
Which of the statements given above are correct?

Options

(a)I and II only
(b)II and III only
(c)I and III only
(d)I, II and III

Correct answer: c

Decision rule

Identifying a mineral as critical marks import dependence, not domestic abundance; any claim of being resource-rich across a whole critical list fails.

Explanation

Correct Answer:

(c) I and III only

Explanation of the Correct Answer:

Let us assess each statement:

Statement I: India has joined the Minerals Security Partnership as a member.

Correct.
India joined the Minerals Security Partnership (MSP) in 2023.
MSP is a US-led, G7-backed initiative aimed at securing supply chains of critical minerals essential for clean energy and advanced technologies.

Statement II: India is a resource-rich country in all the 30 critical minerals that it has identified.

Incorrect.
India has identified 30 critical minerals, but it is not resource-rich in all of them.
India faces import dependence for several critical minerals such as lithium, cobalt, nickel, and rare earth elements, prompting overseas asset acquisition and partnerships.

Statement III: The Parliament in 2023 amended the MMDR Act, 1957 empowering the Central Government to exclusively auction mining lease and composite license for certain critical minerals.

Correct.
The Mines and Minerals (Development and Regulation) Amendment Act, 2023 empowers the Central Government to auction mining leases and composite licences for specified critical minerals, overriding state-level auctions for these minerals.

Thus, Statements I and III are correct.

Why Other Options Are Incorrect

Option	Verdict	Explanation
(a) I and II only	Incorrect	Statement II is incorrect.
(b) II and III only	Incorrect	Statement II is incorrect.
(c) I and III only	Correct	Both statements are factually correct.
(d) I, II and III	Incorrect	Statement II is incorrect.

Relevant Supplementary Information

Table: India and Critical Minerals – Policy & Institutions

Aspect	Details
Critical Minerals Identified by India	30 minerals (e.g., Lithium, Cobalt, Nickel, Graphite, REEs[Rare Earth Elements])
Minerals Security Partnership (MSP)	Multilateral initiative led by USA; India joined in 2023
Objective of MSP	Secure, diversified, and resilient critical mineral supply chains
MMDR Amendment Act, 2023	Central Government empowered to auction certain critical minerals
Reason for Centralised Auction	Strategic importance; uniform policy; faster development
Key Indian Agency	Khanij Bidesh India Ltd. (KABIL) for overseas mineral assets

Context and Current Relevance

India’s clean energy transition (EVs, batteries, renewables) has increased focus on critical mineral security.
The MMDR Amendment, 2023 reflects a shift towards centralised strategic control over scarce minerals.
MSP membership aligns India with trusted supply chains, reducing geopolitical and import risks.

Key Takeaways from the Table

India is not resource-sufficient in all critical minerals despite identifying 30 of them.
MSP membership (2023) strengthens India’s global mineral partnerships.
Central Government now controls auctions for select critical minerals due to their strategic importance.
Critical minerals policy is central to India’s energy security and industrial strategy.

Identification of critical minerals does not imply domestic abundance.
India joined MSP in 2023 to secure global supply chains.
MMDR Amendment, 2023 centralises auction of select strategic minerals.
KABIL plays a key role in securing overseas mineral assets.
Critical minerals are foundational to energy transition and industrial security.

Table: Critical Minerals – India’s Status, Policy Instruments, and Global Initiatives

Aspect	Details	Remarks / Relevant Insight
Critical Minerals (India)	30 minerals identified by Government of India	Identification ≠ resource sufficiency
Examples of Critical Minerals	Lithium, Cobalt, Nickel, Graphite, REEs	High import dependence
India’s Resource Status	Not resource-rich in all identified minerals	Drives overseas acquisition strategy
Minerals Security Partnership (MSP)	Multilateral initiative led by USA	India joined in 2023
Objective of MSP	Secure, diversified, resilient mineral supply chains	Focus on clean energy minerals
MMDR Amendment Act, 2023	Central Govt empowered to auction select critical minerals	Strategic centralisation
Who Auctions Critical Minerals?	Central Government (for notified minerals)	Overrides state-level auction
KABIL (JV of PSU)	Acquires overseas mineral assets	Addresses domestic shortages
Global Leaders in Critical Minerals	Australia, Chile, DR Congo, China	Benchmark for resource richness
Key Demand Drivers	EVs, batteries, renewables, electronics	Explains policy urgency

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