Union Budget Must Support Rare Earths & Critical Mineral Recycling: Deloitte India

New Delhi, Jan 16 (KNN) Deloitte India has recommended that the upcoming Union Budget go beyond exploration and mining to provide targeted support for the processing and recycling of critical minerals and rare earths. 

The consulting firm said such measures are essential to reduce import dependence and strengthen India’s self-reliance in strategic minerals.

Need for Processing and Recycling

Speaking to ANI, Deloitte India Partner Anish Mandal said, "What could be allocated now is also a particular fund around processing of these minerals, or recycling of these minerals from spent magnets."

"Similarly, recycling of lithium and nickel is something that could be looked at, and budgetary support around that would be something industry is expecting," he added.

Support for Overseas Mineral Assets

Mandal also emphasised the importance of government support to assist Indian companies in acquiring mineral assets abroad, especially in countries that present higher political or operational risks.

While Khanij Bidesh India Ltd (KABIL) facilitates overseas sourcing under government-to-government arrangements, additional schemes such as insurance or contingency funds could encourage private investment.

Current Allocations and Industry Gaps

The government has allocated Rs 7,820 crore for the Rare Earths Mission and around Rs 5,000 crore for the National Critical Minerals Mission, which the industry has welcomed. 

However, Deloitte India emphasised that the next phase should focus on building an end-to-end value chain, including downstream processing and recycling, crucial for both supply security and sustainability.

Energy Transition and Long-Term Goals

Mandal linked public funding to India’s energy transition, noting that previous budgetary support for the power sector—around Rs 1 trillion—serves as a benchmark. 

“Anything more than or equivalent to Rs 1 trillion is a welcome step,” he said, adding that sustained public investment is essential to mobilise private capital for clean energy, transmission, storage, and strategic minerals, supporting India’s net-zero target by 2070.

He also welcomed the Rs 1 lakh crore Research, Development and Innovation (RDI) Fund as a key enabler for next-generation energy technologies. 

As the Union Budget approaches, Mandal emphasised that clarity on execution, value-chain integration, and risk-sharing mechanisms will be as important as headline allocations, particularly in strategic sectors.

(KNN Bureau)