India Secures Deals with Mineral-Rich Nations to Tackle Rare Earth Shortage: Minister

Quick Summary

• India is facing supply chain challenges due to china’s export restrictions on rare earth magnets, affecting key industries such as electric vehicle manufacturing.
• The issue was raised in the Lok Sabha by Hyderabad MP Asaduddin Owaisi, prompting a response from the Union government.
• Minister of State for Commerce and Industry Jitin Prasada stated that the government is working with stakeholders to address the situation.
• The ministry of Mines has been active in ensuring supply chain resilience for critical minerals, including Rare Earth Elements (REEs), vital for several sectors like EVs.
• Bilateral agreements have been established with countries abundant in mineral resources such as Australia, Argentina, Malawi, Mozambique, and Peru.
• To secure strategic mineral assets overseas, a joint venture called Khanij Bidesh India Limited has been formed.

Indian Opinion Analysis

China’s export restrictions on rare earth magnets highlight India’s dependency on imports of critical minerals essential for cutting-edge industries like electric vehicles (EVs).While this creates immediate challenges for domestic production capabilities across multiple sectors reliant on rare earths, it also underscores a long-standing vulnerability in India’s supply chain strategy.

The proactive measures taken by the government-including diplomatic partnerships and initiatives like Khanij Bidesh India Limited-are steps toward reducing dependence on China and achieving resource security over time. However, given that important lead times are often involved both in securing foreign assets and developing domestic mining capacity for REEs, mitigating short-term disruptions remains vital.

India’s engagement with nations rich in mineral resources reflects an effort to diversify its suppliers while supporting national priorities like Make-in-India initiatives. This scenario reinforces urgency around building resilient supply chains domestically while reducing geopolitical risks tied to concentrated reliance on any single nation.

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