On 25 March 2026, the Cabinet approved India’s Nationally Determined Contribution (NDC) for 2031–2035. Under this, India commits to reducing the emissions intensity of its GDP by 47 per cent by 2035 from 2005 levels. It also aspires to achieve 60 per cent of cumulative electric power installed capacity from non-fossil-fuel-based energy resources by 2035. For a nation with a population of 140 crore, aspiring to become a Viksit Bharat by 2047, these goals are arguably far-fetched.
Nonetheless, India’s success on the climate front depends on managing two distinct challenges: waste and critical minerals. Undeniably, the government has introduced several policy reforms and initiatives in these areas. The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to boost exploration and mining of critical minerals, leading to the auction of 46 critical and strategic mineral blocks. KABIL has acquired lithium brine assets in Argentina, the National Critical Mineral Mission has been launched, and “Waste to Wealth” has become a buzzword across policy forums.
However, these measures are minuscule compared to the magnitude of the challenge. Waste continues to pollute the environment and deter tourism; critical minerals pose risks to strategic autonomy; and climate change remains an existential crisis. Against this backdrop, Corporate National Responsibility (CNR) emerges as a potential instrument to address waste, critical minerals, and climate change. It is a clarion call for India’s corporate giants to prioritise national imperatives alongside profits.
It goes without saying that profit-making lies at the heart of any business. However, national imperatives must reign supreme. Business houses in the United States and China have demonstrated this repeatedly. In India, conglomerates such as Tata, Birla, Reliance, and Adani dominate the business landscape. These groups have built immense fortunes over the years. Now, the moment calls for CNR.
During the Swadeshi Movement, producing dhotis at a reasonable cost became a national cause. Textile mill owners took pride in contributing to the movement and fostering economic self-reliance. A century later, India requires a similar sense of purpose from its large business houses.
Surging Demand for Critical Minerals
The International Energy Agency forecasts that demand for rare earths will surge three to seven times by 2040, with permanent magnet consumption expected to double by 2030 due to rapid growth in electric mobility, renewable energy, electronics, and defence applications. The World Bank predicts a 500 per cent increase in demand for critical minerals by 2050 to meet global clean-energy goals. Every gigawatt of solar power requires around 80 metric tonnes of silver—just one illustration of how mineral-intensive clean energy is.
Rare earth minerals play a crucial role despite their relative obscurity in public discourse. These elements power technologies ranging from smartphones and wind turbines to advanced defence systems. Praseodymium is used in aircraft engines, gadolinium in MRI imaging, neodymium in computer hard drives, and lithium in batteries.
The global rare-earth market is projected to reach $20-25 billion by 2030, with a CAGR of 10-12 per cent. India’s domestic demand could rise to $1.5-2 billion by the end of the decade and $5-7 billion by 2040. Following China’s export restrictions in 2023 on gallium, germanium, and graphite, nations have scrambled to secure alternative sources in anticipation of future constraints.
Why Onboard Corporate Titans?
The cost, complexity, and long-term commitment required in this sector can realistically be handled only by large business conglomerates. Rare-earth elements are among the most complex materials to process. A single processing facility may involve hundreds of separation stages to achieve the required purity. For instance, neodymium and praseodymium differ by only one electron, necessitating highly sophisticated chemical techniques. This complexity significantly raises both production costs and environmental risks.
Plasma furnaces, used to extract rare earths embedded in components, require temperatures ranging from 3,000°C to 10,000°C. Importing such a furnace, which can cost over ₹20 crore, is prohibitively expensive for new recyclers.
Critical minerals can be sourced through three primary routes: primary extraction (mining), recovery from secondary sources such as end-of-life electronics, and extraction from unconventional sources like industrial waste (e.g., coal ash).
India generates a vast volume of waste that can be tapped. Neodymium is used in electric motors, hard drives, and speakers; yttrium in LED lights and lasers; europium in colour displays and blue LEDs; terbium in integrated circuits and solid-state devices; and dysprosium in wind turbine magnets. However, recyclers often lack the expertise to move beyond dismantling into advanced refining. MSMEs and early-stage start-ups face significant financial constraints.
India is effectively running against time on waste management, climate goals, and critical minerals. During the freedom movement, industrialists such as Seth Walchand Hirachand, G.D. Birla, Jamnalal Bajaj, and R.D. Tata stepped forward for a cause they believed was both nationalist and economically viable. Today, the nation requires a new generation of business leaders to rise to a similar occasion through CNR.
From Policy to Execution
Critical minerals will remain a hard-to-abate sector, while waste management is inherently capital-intensive. Promoting start-ups and MSMEs in this space is commendable. However, given the scale, scope, and urgency, Indian conglomerates must take the lead in fulfilling the CNR.
Key areas such as reverse logistics for high-value components, hydrometallurgy, process optimisation, and component traceability will require substantial and coordinated investment.
The solution lies in urban mining, recovering valuable materials from India’s growing e-waste stream. A significant stockpile of rare earth elements already exists within this waste.
Business consortia can pool resources to create Special Purpose Vehicles (SPVs) dedicated to national objectives, collaborating beyond existing Centres of Excellence. Corporate houses can establish a Rare Earth Metal Alliance (REMA) to facilitate technology exchange in mining, extraction, and processing. User industries such as automobile manufacturing can also participate by funding R&D initiatives.
Conclusion
India must navigate technical, financial, and policy challenges to position itself as a global critical mineral powerhouse. The strategic importance of these resources fully justifies the effort. It is time for India’s business titans to forge a resilient and green future by embracing the CNR.
(Satish Mishra is a senior corporate affairs manager based in Delhi, with expertise in public policy, electric mobility, aviation, and sustainable business strategy)
