Development vs. Displacement: India’s Critical Mineral Rush and the Search for a Balanced Future

Development vs. Displacement: India’s Critical Mineral Rush and the Search for a Balanced Future

India is emerging as a vital new player in the global critical minerals landscape. With vast untapped reserves, proactive policy frameworks, and an increasing urgency to secure clean-energy supply chains, the country stands at a rare crossroads. The choices made today will determine whether mining becomes a catalyst for inclusive growth, or a repetition of the displacement-driven narratives of the past.

By 2030-31, the National Critical Minerals Mission aims to secure 24 essential minerals. This ambition is not without foundation. India has over ₹1 lakh crore accumulated in District Mineral Foundations (DMFs), more than 300,000 community development projects, and several progressive laws that, if effectively implemented, can redefine how mineral wealth is shared.

Yet beneath these opportunities lies a deeper challenge: how do we ensure that development does not become displacement?

 

The Resources Are There. So Are the People.

India’s geological strength is undeniable:

○ Substantial rare earth deposits
○ 163.9 million tonnes of copper reserves
○ 44.9 million tonnes of cobalt ore
○ Lithium reserves recently discovered in Jammu & Kashmir

But these numbers do not exist in a vacuum. They lie beneath communities, many of them tribal, that have historically not benefited from the wealth extracted from their own land.

Regions like Niyamgiri Hills (Odisha) and Hasdeo Arand (Chhattisgarh) often appear in headlines as conflict zones. But these places are not just sites of contention, they are testing grounds for a more ethical mining future.

 

For decades, the traditional mining model has looked like this:

○ Wealth flows out of the region
○ Communities are uprooted
○ Forests are lost
○ Short-term employment ends with mine closure
○ Abandoned pits and long-term health issues remain

This is not development; it is displacement disguised as progress.

But India today has the chance to build a different narrative.

 

A New Possibility: Mining that Builds, Not Breaks

Imagine a mining model that prioritises community prosperity and environmental responsibility. The building blocks already exist:

1. Employment Ecosystems

Not just daily-wage labour, but skilled, long-term careers:

○ Wealth flows out of the region
○ Communities are uprooted
○ Forests are lost
○ Short-term employment ends with mine closure

These are jobs that can outlast the mine itself and empower local youth with future-ready skills.

2. Infrastructure That Stays

Mining-linked development can create:

○ Permanent roads
○ Schools and digital learning centers
○ Healthcare facilities
○ Clean drinking water systems
These must be designed to serve communities long after extraction ends.

3. Revenue Streams That Give Communities Control

DMFs can become engines of:

○ Local entrepreneurship
○ Women-led self-help groups
○ Agricultural resilience initiatives
○ Health and sanitation programs

But this requires transparency, digital governance, and community participation, not just administrative paperwork.

4. Equity Partnerships

The future of ethical mining lies in shared ownership:

○ Tribal communities as equity holders
○ Profit-sharing models
○ Community-managed trusts
○ Joint decision-making committees

The goal is simple: communities should prosper because of mining, not in spite of it.

 

Why All This Matters Now

Global demand for clean energy materials is exploding:

○ TLithium demand may rise 7x by 2030
○ Cobalt demand may double
○ Demand for rare earths may quadruple
○ India imports over 90% of several essential critical minerals

This is not about convenience. It’s about strategic autonomy, especially as India pursues:

50% non-fossil energy capacity by 2030
Net-zero by 2070

But securing minerals is not enough. Securing social stability is equally crucial. Supply chains originating in conflict zones or regions with unresolved community tensions remain vulnerable. When communities benefit from extraction, they become long-term partners rather than protestors.

 

 

 

16 Dec, 2025
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