THE CASE FOR VALUE ADDITION

WEALTH is not in what you extract, but in what you create. In a world being defined by accelerating change, countries that will succeed will be those that understand this fundamental truth.

- Amit Kapoor & Meenakshi Ajith

From the green to the digital transitions, materials once seen as mundane including lithium, graphite and rare earths have now become 'critical'. But here's the catch amid all these exciting new pursuits; what is strategic today will be obsolete tomorrow and what remains is the enduring value. Even criticality is only temporal.

The global political economy is in a flux with the rise of protectionism, trade fragmentation and rewiring of supply chains. Emerging economies are eager to enter this competitive landscape to meet their ambitious development goals. India, Africa, and many emerging Latin American countries consider natural resources and their mineral wealth as key to their development trajectories. However, these countries if not careful can become locked in extractive cycles yet again. Merely racing to find and exporting raw materials and importing finished products at a premium is not just an economic inefficiency but also a structural trap. In doing so, they relinquish control over pricing, innovation, and long-term development. The only way forward is to focus on value addition. By creating jobs, fostering new skills and enhancing technological capabilities, it can transform a country from being a passive supplier to an active player in the global markets.