India is ramping up efforts to reduce its dependence on foreign sources of rare earth minerals, following China’s imposition of new export controls that have unsettled global supply chains, according to a government economic report released on Friday.
The finance ministry’s May economic review highlighted concerns over potential disruptions in the domestic supply of rare earth elements — materials essential for electric vehicles, wind turbines, and medical equipment — as China tightens its grip on global exports. Despite possessing the world’s fifth-largest reserves, India’s rare earth production remains minimal and underdeveloped.
“In response to global supply risks, India has been taking a series of steps to mitigate possible disruptions,” the report said, referencing the recent launch of a seven-year national initiative focused on building self-reliance in rare earth supplies.
India imported 53,748 metric tons of rare earth magnets in the fiscal year ending March 2025, underscoring the country’s heavy reliance on imports for key components in advanced manufacturing sectors.
China’s tightening export restrictions on rare earths have drawn warnings from automakers and technology firms worldwide, who fear production bottlenecks. The Indian government’s new initiative aims to build domestic capacity and secure critical materials needed to support its growing high-tech and clean energy sectors.