Niti Aayog on Wednesday recommended that India strengthen its mineral exploration ecosystem, improve compliance with the Carbon Border Adjustment Mechanism (CBAM) and introduce regulatory reforms to help the metals and ores sector become more competitive.
In the iron and steel sector, India’s trade exposure stands at 39.3 per cent, indicating that nearly two-fifths of its steel exports are destined for the EU, while the share for aluminium is 15.6 per cent, the think tank said in its Trade Watch Quarterly report, which included a thematic analysis of the metals and ores sector.
The Aayog recommended that the government improve access to renewable energy, establish more uniform renewable energy open-access norms, increase renewable energy banking and rationalise wheeling and cross-subsidy charges for group captive projects.
Niti’s chief executive officer, Anurag Jain, said several steps were already being taken on decarbonisation by the steel ministry, which should help companies comply with the CBAM.
Last week, the BRICS New Delhi Declaration expressed opposition to unilateral, punitive, discriminatory and protectionist measures that were not in line with international law, such as carbon border adjustment mechanisms. It also expressed concern that such measures undermine efforts by countries, particularly developing countries, to address the adverse effects of climate change and increase adaptive capacity and resilience.
The think tank also flagged India’s dependence on critical mineral imports and recommended a review of the tariff and quality-control framework for specialised products, including nickel-based superalloys, where domestic manufacturing capabilities exist.
Niti Aayog said copper imports more than tripled in value, from $3.3 billion to $11.8 billion, between 2015 and 2025. Volumes more than doubled, while import dependence stood at 57 per cent.
India is 100 per cent import-dependent on nickel, cobalt and lithium compounds, with demand for nickel projected at 11,543 kilotonnes during 2025-30 and demand for lithium and cobalt also expected to rise sharply, it said.
It also flagged the need to strengthen rules of origin, including appropriate “melt and pour” requirements, and review tariff concessions where sustained import growth is affecting domestic capacity utilisation and investment.
“Explore transparent product specific measures, including tariff-rate quotas where appropriate, to address sustained import surges while ensuring access to essential inputs,” it recommended.
On strengthening exploration, the think tank recommended that India develop a supportive ecosystem for junior exploration companies through improved access to geological data, risk capital and appropriate fiscal support to expand the domestic resource base.
It also called for accelerating the auctioning and operationalisation of lapsed blocks and introducing predictable auction pipelines to provide greater certainty for long-term raw material planning.
The Aayog also recommended faster environmental and other clearances. It suggested extending the validity of Certified Compliance Reports, reducing repetitive scrutiny across multiple approval stages and simplifying forest clearance procedures to accelerate mine operationalisation and industrial expansion.
