India Proposes Critical Minerals Partnership with the US

India has proposed a Critical Minerals Partnership Agreement (CMPA) with the US to benefit domestic firms in sectors such as electric vehicles. This proposal was made during Commerce and Industry Minister Piyush Goyal's recent visit to the US, where a memorandum of understanding to enhance critical mineral supply chain cooperation was also signed.

Commerce and Industry Minister Piyush Goyal has revealed that India has suggested a Critical Minerals Partnership Agreement with the United States, aimed at benefiting domestic firms, including those in the electric vehicle sector, in the US market.

This proposal was tabled during Goyal's trip to the US earlier this month, highlighting India's intent to turn a memorandum of understanding on critical mineral cooperation into a partnership agreement. This strategic move seeks to foster a free trade dialogue, although the US Congress remains hesitant about FTAs.

The potential partnership would pave the way for Indian firms to access crucial Minerals-related incentives available under the US Inflation Reduction Act, whilst further discussions encompassed sectors like technology transfer, pharmaceuticals, and clean energy collaboration.

(With inputs from agencies.)