Addressing the B20 Summit India 2023 in New Delhi, Prime Minister Shri Narendra Modi emphasized the need for nations to adopt a “global responsibility” approach to the custodianship of critical minerals. He cautioned that a failure to do so might lead to what he termed a “new model of colonialism.”
The summit brought together policymakers, business leaders, and experts worldwide to discuss the B20 India Communique. Which offers 54 recommendations and 172 policy actions for submission to the G20.
In his speech, Prime Minister Modi highlighted the ongoing challenges in securing critical materials, such as rare earths. Which are essential for energy transition goals. He stressed that these resources are vital for all of humankind, and nations possessing them should not overlook their global responsibility.
The uneven geographical distribution of critical minerals has raised concerns about the reliability of supplies for eco-friendly energy transitions. China’s dominant role in this sector, responsible for the majority of rare earth mine production and processing capacity, underscores these concerns.
Recent export restrictions imposed by China on select minerals have only heightened apprehensions.
Modi’s address resonated with global business executives and industry heads as he outlined India’s potential to create an efficient and dependable supply chain. He contrasted this with the pre-COVID-19 supply chain vulnerabilities that were exposed.
The call for global responsibility aligns with broader efforts to diversify supply chains. Earlier, India and the U.S. announced collaborations spanning technology, minerals, space, and defense during Prime Minister Modi’s visit to Washington.
In Conclusion, Prime Minister Modi’s cautionary message underscores the importance of equitable resource distribution to prevent potential disparities and dependencies. While his vision for an efficient supply chain resonates with the global pursuit of stability and resilience.