By Shailesh Yadav

New Delhi [India], July 6 (ANI): Collaboration between industry and government which proved successful in semiconductors, will be the key to addressing rare minerals dependencies according to president of the Confederation of Indian Industry (CII) who pointed out that there is no short-term fix for the possible shortage of rare-earth minerals.

'It's a long-term solution,' acknowledged the CII President Rajiv Memani emphasizing on the need for a comprehensive, product-led strategy.

'What are the minerals that are required for that? What is the technology that's required for that? What is the policy support or financial support that that industry or sector needs?' he outlined, calling for urgent action despite the long-term nature of solutions.

Rare earth elements (REEs) are crucial in modern technological products such as smartphones, electric cars, and advanced military equipment. Countries with rich REEs deposits have become pivotal players in the industry and essential elements of international supply chains.

The president of industry body specifically highlighted the automotive sector's vulnerability to rare minerals shortages. 'When I talk to automobile companies, they say this will really make a difference,' he noted, emphasizing the sector's concern about supply chain disruptions.

The CII chief outlined a strategic approach for India: 'India will have to identify where there are major risks in their supply chains. If it's minerals, then they need to create a minerals strategy - either how to produce them here or where to import them from, and what support the private sector needs from the government.'

Memani acknowledged the complexity of establishing domestic production capabilities, citing cost disadvantages compared to established global players. 'Many things are not viable in themselves because of the cost of production - many countries have built such scale that their cost of production is quite low, and they have done such backend integration of their mineral resources that replicating it immediately is very difficult.'

He emphasized that government support would be essential, whether through policy measures or other assistance to the private sector.

The CII President highlighted additional challenges posed by regulatory frameworks, particularly for radioactive minerals. 'Many minerals are radioactive, and the Department of Atomic Energy is also involved. So often, after talking with them, a big urgent strategy should be made about which countries to partner with,' he explained.

Drawing parallels with international experiences, Memani cited Japan's decade-long efforts in this sector. 'If you look at Japan, they have been working on this for so many years. The value addition they have achieved so far is only around 40 per cent, and they have been at it for 10 years,' he said, illustrating the time-intensive nature of building rare minerals capabilities.

Memani drew extensive comparisons with India's semiconductor mission, positioning it as proof of the country's capability to tackle complex technological challenges. 'When the semiconductor problem came, the government worked on it. They brought out a semiconductor policy, then made some amendments, and then launched the PLI scheme with an allocation of Rs 75,000 crore for four companies,' he explained, highlighting the systematic approach that delivered results.

The CII President expressed strong confidence in the semiconductor sector's trajectory: 'I think that gradually, as the semiconductor industry develops in India, this entire ecosystem will develop in seven to eight years.'

This success story, according to Memani, demonstrates India's proven methodology for addressing strategic vulnerabilities through comprehensive policy frameworks and substantial financial commitments.

Memani emphasized that once the ecosystem develops, it becomes a significant competitive strength for the country. 'It is an evolving technology. Things keep on changing, but once the ecosystem develops, then it becomes a very strong, competitive strength that a country has when they have their own semiconductor ecosystem,' he noted.

The CII President's comments reflect strong confidence in India's ability to develop indigenous capabilities in critical sectors. His reference to the semiconductor success story serves as evidence that India can systematically address complex supply chain challenges through strategic planning and sustained commitment.

'It will take several years. It's not like this problem will be solved in six months. But we have to start,' Memani concluded, expressing certainty that India will overcome the rare minerals challenge just as it has begun conquering the semiconductor sector. (ANI)