Political Affairs
Get all the latest local news and viral content from Bharat with a focus on top national events and trending local stories.

India's Strategic Mineral Agreements: Implications for Sri Lanka's Graphite Sector

© AP Photo / Manish SwarupIndian Prime Minister Narendra Modi shakes hand with Sri Lankan President Ranil Wickremesinghe after making press statement respectively, in New Delhi, India, Friday, July 21, 2023.
Indian Prime Minister Narendra Modi shakes hand with Sri Lankan President Ranil Wickremesinghe after making press statement respectively, in New Delhi, India, Friday, July 21, 2023. - Sputnik India, 1920, 28.05.2024
India is pushing back Western competitors in its approach to the Sri Lankan graphite industry. The country reinforces its status as a major participant in resource extraction by capitalizing on the supply chain management expertise, which is bolstered by the states close proximity to Colombo and embracing rupee-based trade, according to experts.
The strategic significance of Sri Lanka's graphite industry has revealed strong competition for investment among major global players, including India, China, the United States, France in addition to Canadian and Australian companies already involved in the industry, according to a report from the Daily Mirror.
Sri Lanka is recognized for its substantial deposits of high-quality vein graphite, which plays a pivotal role in "India's battery manufacturing sector", Group Captain Ajey Lele (Retd.), Deputy Director General of Manohar Parrikar Institute for Defence Studies and Analyses, told Sputnik India.
Meanwhile, Indian game plan on Sri Lanka mineral is significantly supported by the territorial advantage, Lele underscored.

"Sri Lanka stands as India's immediate neighbour, fostering one of the strongest bilateral relationships. This proximity not only enhances geopolitical cooperation but also simplifies logistical operations due to the shorter physical distance between the two nations compared to Western counterparts. This geographical advantage proves crucial, especially concerning supply chains and related endeavours," he claimed.

Highlighting India's strategic interests, Lele mentioned that the semiconductor industry emerges as a pivotal player, particularly in the realm of electric vehicles (EVs) and green technologies. He suggested that these industries heavily rely on various minerals, positioning India to contribute significantly, either directly or indirectly, to the global challenge of climate change.
"While India has secured agreements for cobalt and copper extraction from the Democratic Republic of the Congo, resources such as niobium and graphite from Tanzania, and graphite and titanium from South Africa, are indispensable across various industries. Yet, the security challenges inherent in these regions present notable hurdles," he suggested.

India-Sri Lanka Rupee Trade

However, Lele added that India is cautious about being "excessively reliant on any single source" to effectively mitigate such risks. Consequently, diversification, "exemplified by potential collaboration with Sri Lanka, is central to India's strategic approach," aligning with the dynamic requirements of supply chains and related considerations.
The captain explained that pertinent of the nuances of Sri Lanka currency exchange denominations vis-à-vis Western countries hold significance in trade discussions.
Furthermore, he recommended that exploring the potential for "bilateral trade between India and Sri Lanka in rupees opens up intriguing possibilities."
"Such arrangements position India as a significant player in resource extraction compared to Western nations. This shift towards rupee-based trade suggests a promising avenue for fostering mutually beneficial trade relationships between the two countries," he concluded.
Meantime, Director General of the Geological and Mines Survey Bureau, Prof. Ranjith Premasiri, confirmed the interest of Chinese and Indian companies in investing in the graphit sector, accroding to Indian media. He highlighted the importance of evaluating which businesses are maximizing the value of graphite for advanced industrial applications, especially considering the presence of over 3,000 abandoned pits across the country.

Screaming dollar - Sputnik India, 1920, 18.05.2024
Business & Economy
India, Sri Lankan De-Dollarisation Drive to Secure $1.1 Billion in Earnings For Colombo
To participate in the discussion
log in or register
Заголовок открываемого материала