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India’s Strategic Role in Clean Energy: Rare Earths Drive Global Shift

Posted on October 22, 2025

A report by Kotak Mutual Fund highlights India’s potential to become a key player in the clean energy transition due to its significant rare earth mineral reserves, representing 6% of global supply. This positions India advantageously amidst a global contest for resources powering modern technology. Positive implications include potential economic growth for India, increased global supply chain diversification for clean energy technologies, and opportunities for investment in mining and processing. Negative factors could include environmental concerns associated with extraction and geopolitical tensions over resource control. Investors looking at the clean energy sector should consider companies and countries with strong resource bases like India. The shift to clean energy is a major global trend, influenced by both environmental policies and strategic resource competition. Geopolitical stability in resource-rich regions will be crucial.

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