India responds to China's rare earth export curbs: Goyal calls it a ‘wake-up call' for world

Time of India

6 hours ago

Commerce and Industry Minister
Piyush Goyal
has described China's new rare earth export restrictions as a global 'wake-up call,' underlining the need for countries to diversify critical supply chains. Speaking during an official visit to Switzerland on Monday, Goyal highlighted India's efforts to position itself as a dependable partner for international businesses seeking alternatives to Chinese suppliers, reports ANI.
China's export restrictions, effective from April 4, mandate special licenses for the export of seven rare earth elements and related magnetic products. With China controlling over 90per cent of global magnet production, the move has raised significant concerns among industries dependent on these materials.
Short-Term Challenges for Indian Industry
Goyal acknowledged that the new rules would create immediate hurdles for India's automotive and white goods sectors. 'There are clearly issues around the suspension of permanent magnet supplies from China to India, which will particularly affect our auto sector and several white goods manufacturers,' he said.
Automotive companies in India have sought the government's assistance to expedite approval processes for importing rare earth magnets, which are vital components in electric vehicles and other technologies.
India's Strategy: Diplomatic and Domestic Measures
The minister outlined a multi-pronged strategy to mitigate the impact of the export curbs. The Indian embassy in China is actively engaging with authorities to facilitate existing applications, while the commerce ministry is working to identify and secure alternative supply sources globally.
Additionally, the government is ramping up efforts to enhance domestic capabilities by strengthening Indian Rare Earths Limited (IREL). 'We are providing all necessary resources to accelerate our own rare earth production,' Goyal stated.
Industry Shifting Away from Subsidy Dependence
Goyal noted a growing maturity within Indian industry, pointing out that many companies are now proactively collaborating with domestic startups and innovators instead of relying solely on government support. 'They are becoming bigger and bolder in their approach,' he remarked, adding that firms are even willing to fund early-stage innovations and support pricing transitions.
Encouraging conversations with automotive manufacturers indicate confidence in the ability to address these supply chain disruptions collaboratively, Goyal added.
Technological Innovation and Trusted Partnerships
India is also banking on technological breakthroughs to reduce its reliance on Chinese rare earths. The minister referenced ongoing research and development initiatives that aim to provide alternative solutions.
'There are some technologies that India is developing,' he said, emphasising that the collaborative ecosystem—comprising government, industry, and innovators—is working cohesively.
Turning Crisis Into Opportunity
Despite the challenges, Goyal struck an optimistic tone, calling the disruption a strategic opportunity to strengthen India's manufacturing base and global relevance. 'More and more companies and people in India will recognise that it is important to be self-reliant and to have trusted partners in supply chains,' he said.
With growing international recognition of India as a reliable supply chain partner, Goyal believes the crisis could catalyse a shift toward greater resilience and global integration for Indian industry. 'We are all working as a team,' he concluded, 'and we remain confident that we will emerge as winners in the medium to long term.'
(Source- ANI)