India Responds to China's Rare Earth Export Curbs to Secure Supply Chain

India Fortifies Rare Earth Supply Chain Amid China's Export Curbs

India is proactively addressing potential disruptions to its supply chain stemming from China's restrictions on rare earth minerals. This move follows concerns raised by China's recent export controls, which have impacted the global auto industry and other sectors.

National Initiative to Boost Domestic Supply

A recent economic report from New Delhi outlined a seven-year national initiative focused on strengthening India's domestic rare earth supplies. Despite holding substantial reserves, India's production capacity is currently underdeveloped.

Reliance on Imports

In the fiscal year concluding in March 2025, India imported 53,748 metric tons of rare earth magnets. These magnets are crucial for manufacturing automobiles, wind turbines, medical devices, and various high-tech products.

Incentives for Domestic Production

To reduce reliance on imports, India plans to offer incentives to companies establishing rare earth processing and magnet production facilities within the country, aiming to meet local demand and enhance supply chain resilience.