Meanwhile, India’s partnerships with countries like the UAE, the US and the UK focus primarily on joint ventures for mineral processing and recycling. Yet, without assured and stable supplies of critical minerals, such processing hubs risk becoming economically unviable, raising the possibility of stranded assets. These agreements must, therefore, be backed by long-term arrangements and embedded in broader supply-chain strategies to ensure their sustainability.

Minilaterals, or “clubs”, offer a unique solution where India and partner countries coordinate and co-develop projects. These small groupings of like-minded partners allow for joint technical, financial, and diplomatic resources to support innovation across the minerals value chain. They overcome financial constraints for Indian ventures by tapping into a broader pool of capital, blended finance mechanisms and export credit agencies. Indian companies can also leverage advanced technological expertise from countries such as Australia and Japan regarding exploration, mining and processing. The Minerals Security Partnership (MSP), of which India is part, offers ready-made structures for co-financing and strategic project selection.

Clubs allow India to ensure economic security, diversify supply chains, forge resilient partnerships, and secure its place in the emerging clean-tech order. Yet, India needs to be strategic when engaging in such groupings, to understand how it can balance international partnerships without limiting its national interests and domestic priorities.

The agreements also encourage “friendly stockpiling of reserves”, where member countries share resources. However, as seen with the rise of protectionist leaders such as Donald Trump, a change in administration can alter global trade dynamics, with amended trade rules including increased tariffs and quality controls. India should ensure that there are robust protection mechanisms to prevent such disruptions in resource-sharing without imposed conditionalities or restrictions, pushing for clear terms of access, transparent governance, and reciprocal obligations.

India’s ambitions under “Make in India” and “Atmanirbhar Bharat” seek to make the country self-reliant on critical minerals and green technologies, while creating incentives for exports-based minerals industries. However, increasingly, this requires compliance with global environmental, social and governance (ESG) standards. Through participation in these clubs, India can influence discourse around ESG standards, presenting the Global South perspective as opposed to unilateral imposition from Western countries. Membership also encourages India to take a more structured approach to its own domestic ESG practices, aligning industry with partner countries. While improving India’s ESG standards may see a period of growing pains, in the long term, it will help make domestic manufacturing competitive.

As India seeks to become a global green power, it must remain true to its development ethos while engaging strategically to create equitable global value chains, without becoming extractive or overly reliant on great power blocs.