China’s recent export controls on rare earth materials have rattled the global auto industry, triggering warnings of supply chain disruptions and potential production halts, including in India.
Despite holding the world’s fifth-largest rare earth reserves, India’s domestic output remains underdeveloped.
In the fiscal year ending March 2025, the country imported 53,748 metric tons of rare earth magnets, which are critical for manufacturing automobiles, wind turbines, medical devices, and other high-tech goods.
“On the domestic front, India has also been taking a series of steps to mitigate possible disruptions,” a report prepared by the federal finance ministry said, citing the launch of a seven-year national initiative aimed at strengthening domestic rare earth supplies.
India is planning to offer incentives to companies to set up rare earth processing and magnet production facilities to meet local demand, people familiar with the matter told Reuters earlier this month.
Content Source: economictimes.indiatimes.com