India, Russia discuss collab in rare earth, critical minerals extraction despite US tariffs
Discussion also held on areas including underground coal gasification, and creation of modern industrial infrastructure at a working group meeting
Even as India is facing a steep US tariff of 50 per cent over its purchase of Russian oil, representatives from India and Russia on Wednesday (August 6) held discussions on industrial cooperation across a range of areas including rare earth and critical minerals extraction, underground coal gasification, and creation of modern industrial infrastructure.
The Ministry of Commerce and Industry, in a statement, said the issue came up for discussions during the India-Russia Working Group on Modernisation and Industrial Cooperation meeting in India that was held under the framework of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation.
Rare earth minerals, modern industrial infra
While the Department for Promotion of Industry and Internal Trade Secretary Amardeep Singh Bhatia represented India, the Russian side was represented by Deputy Minister of Industry and Trade of the Russian Federation, Alexey Gruzdev. Around 80 delegates attended the event.
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“Both sides explored opportunities in rare earth and critical mineral extraction, underground coal gasification, and the creation of modern industrial infrastructure,” the Ministry of Commerce and Industry said in a statement.
Rare earth minerals and those like copper, lithium, nickel, and cobalt are required to fuel the growth of rapidly-growing clean energy technologies and their expanding uses, ranging from wind turbines and electricity networks to electric vehicles and battery manufacturing.
The meeting gains significance amid Chinese curbs on the export of seven rare earth minerals amid trade tensions with the US. The move, however, has hit India’s automobile sector.
China, at present, supplies 90 per cent of the world’s rare earths, and dominates the global production of rare earth magnets and elements like samarium, neodymium, and dysprosium.
The ministry said the key focus areas included cooperation in aerospace science and technology, including the establishment of a modernised wind tunnel facility, production of small aircraft piston engines, and joint development in carbon fibre technology, additive manufacturing, and 3D printing.
India, Russia sign protocol
The two sides also welcomed enhanced engagement in aluminium, fertilizers, and railway transport, alongside capacity building and technology transfer in mining sector equipment, exploration, and industrial and domestic waste management.
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The meeting concluded with the signing of the Protocol of the 11th Session by both the co-chairs, “reaffirming the strategic India-Russia partnership and shared commitment to deepen industrial and economic cooperation,” the ministry said.
The meeting came the day US President Trump imposed an additional 25 per cent ad valorem tariff on Indian goods, in addition to the 25 per cent reciprocal tariffs that he had announced as a punishment for India’s purchase of Russian oil.