India has taken a countermeasure to curb Chinese restrictions on the export of critical earth minerals. These components are essential for electric vehicles, defence technologies, wind turbines, smartphones, and space systems.
India will now begin production of its rare earth magnets within three to four months. India targets self-reliance in critical magnet manufacturing. The technology will be transferred to the private sector for manufacturing in order to increase production.
The central government confirmed that a research institute under the mining ministry has established an advanced permanent magnet processing unit. Now the government needs to look at the economy of scale. This, however, will lower India’s dependency on Chinese supplies.
Strategic Push to Strengthen Supply Chain
The government is introducing Production Linked Incentive (PLI) schemes and is reportedly preparing to invest between ₹3,500 crore and ₹5,000 crore. The investment will be used to set up rare earth processing and magnet production facilities. It will encourage domestic private manufacturing units to start their operations.
As part of this long-term strategy, IREL (India) Ltd. has recently suspended an export agreement with Japan. India is trying to redirect its resources to meet domestic demand. The Centre aims to scale up its import of raw material as well as grow its local production.
Global Disruptions Prompt Urgent Policy Action
For rare earth materials, China controls approximately 90% of the market. During the Trump tariffs war, Beijing tried to tighten exports, which prompted interruptions and increased uncertainties in the international supply chain. India’s electronics and automotive sectors were immensely impacted by these long delays in imports.
The Centre’s initiative forms part of a broader global effort. It will diversify critical mineral sourcing and build resilient supply chains.
Also Read: India’s Auto Industry Faces Supply Threat As China Tightens Rare Earth Exports
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
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