India's Strategic Response to China's Rare Earth Dominance

In a significant step towards self-reliance, India has announced a Rs 1,345 crore scheme to develop domestic production capabilities for rare earth magnets. This move comes as China tightens its export controls on rare earth elements, crucial for various high-tech industries.

The Ministry of Heavy Industries Secretary, Kamran Rizvi, has confirmed the distribution of a draft scheme for inter-ministerial review, signaling the government's commitment to reducing dependency on Chinese imports.

Indian Companies Rally Behind Domestic Production

Leading Indian companies, including Mahindra & Mahindra and Uno Minda, have expressed interest in establishing local magnet production facilities. This initiative aims to secure supply chains for essential components used in electric vehicles, telecommunications, and defense technologies.

With China controlling over 90% of global magnet processing, India's third-largest rare earth reserves position it as a potential global player in the rare earth market.