UPSC Prelims 2025 Q6: Indian Economy – Infrastructure & Industry
- (a) I and II only
- (b) II and III only
- (c) I and III only
- (d) I, II and III
Answer: (c) I and III only
Explanation
Statement-by-Statement Breakdown:
| Statement | Claim | Verdict |
|---|---|---|
| Statement I | India joined the Minerals Security Partnership (MSP) | TRUE - India joined MSP in 2023 alongside USA, UK, France, Japan and others |
| Statement II | India is a resource-rich country in critical minerals | FALSE - India is import-dependent for many critical minerals (cobalt, nickel, lithium) |
| Statement III | Parliament amended the Mines and Minerals Act for critical minerals | TRUE - 2023 amendment gave Central Govt exclusive power to auction critical mineral leases |
Why India joined MSP: India joined precisely because it is a deficit nation in critical minerals — to secure supply chains and reduce dependence on single-source suppliers (mainly China).
Answer: (c) I and III only.
Why each option is right or wrong
- (a) Incorrect. Statement II is false — India is import-dependent in many critical minerals. Only I and III are correct.
- (b) Incorrect. Statement I is correct (India joined MSP in 2023). Only including II and III is insufficient.
- (c) CORRECT. India joined MSP in 2023 (I) and Parliament amended the Mines Act in 2023 for critical minerals (III). But India is NOT resource-rich in all critical minerals — it joined MSP to address supply chain vulnerabilities.
- (d) Incorrect. Statement II is factually wrong — India is a critical minerals deficit country, not a resource-rich one.
Key point
India joined MSP (2023). Parliament amended Mines Act (2023) for critical minerals. India is NOT resource-rich in all critical minerals — it is import-dependent.
Remember
India joined MSP in 2023. Parliament amended mining law for critical minerals. India is NOT resource-rich in all critical minerals.
Common mistakes
- Assuming India joined MSP because it has abundant mineral resources. India joined because it lacks critical minerals and needs secure supply chains.
- Not knowing the 2023 Mines and Minerals Act amendment gave Central Govt exclusive authority to auction critical mineral leases.
- Confusing MSP (Minerals Security Partnership — supply chain body) with MSP (Minimum Support Price — agriculture). These are completely different.
Exam tip
MSP (Minerals Security Partnership) = formed to reduce dependence on China for rare earths and critical minerals. India joined as a deficit nation. 2023 = two key events: India joins MSP + Parliament amends Mines Act.
Sources
- Minerals Security Partnership Official Announcement (2023)
- Ministry of Mines - Critical Minerals List
- Mines and Minerals (Development and Regulation) Amendment Act, 2023
- Government Press Release - Critical Minerals Strategy