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India takes steps to minimize disruptions caused by China's rare-earth curbs

New Delhi's May Economic Report released on Friday said that India was taking steps to minimize possible disruptions caused by restrictions on rare-earth minerals imposed on China.

China's recent restrictions on exports of rare earth minerals have shook the global automotive industry. There are warnings about supply chain disruptions as well as possible production halts. This includes India.

India's domestic production is still underdeveloped despite having the fifth largest rare earth reserve in the world.

The country imported 53 748 metric tons in the fiscal year that ended March 2025. Rare earth magnets are essential for the manufacture of automobiles, windmills, medical devices and other high-tech products.

A report by the federal ministry of finance stated that India had taken a number of steps at home to minimize possible disruptions. The report cited the launch of a 7-year initiative designed to strengthen domestic rare earth supply.

People familiar with the situation told us earlier this month that India plans to offer incentives for companies to establish rare earth processing and production facilities in order to meet the local demand.

(source: Reuters)