India and the US inked a pact to expand and diversify the critical minerals supply chain

Current Context: India and the US signed a memorandum of understanding (MoU) to expand and diversify the critical minerals supply chain on October 4, 2024.

• The signing took place during a bilateral commercial dialogue in Washington, DC.
• Aim: The MoU aims to reduce dependence on China by leveraging the complementary strengths of both countries to ensure greater resilience in the critical minerals sector.
• This includes cooperation in areas such as exploration, extraction, processing, refining, recycling, and recovery of critical minerals.
• The MoU focuses on minerals essential for electric vehicles (EVs) and clean energy.
• It was signed by India’s Commerce Minister Piyush Goyal and US Commerce Secretary Gina Raimondo.
• Both sides also discussed semiconductor supply chains, innovation in clean energy, and promoting tourism.
• This agreement is seen as a strategic move to bolster trade ties and enhance supply chain resilience in critical sectors.

Question:

1 What is the primary objective of the MoU signed between India and the US regarding the critical minerals supply chain?

• A) To increase exports of minerals to China
• B) To reduce dependence on China
• C) To invest in coal mining in India
• D) To promote tourism between India and the US

Answer: B) The MoU aims to reduce dependence on China by leveraging the complementary strengths of India and the US, ensuring greater resilience in the critical minerals sector.