Indian govt report in 2022 foresaw China rare earth export crisis
As Indian manufacturers are scrambling to deal with supply-chain disruptions caused by China's restrictive policies on the export of rare earth metals, in many of which it has a near monopoly, experts are pointing to an early warning of this — in a 2012 strategy paper prepared by a steering committee headed by the then mines secretary Vishwapati Trivedi after a similar crisis caused after Beijing restricted supplies of the critical materials that are needed in the auto, space and clean energy industries.
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Back then, they added, India felt the heat of Chinese squeeze and on August 9, 2011, the government set up an 11-member steering committee to develop a strategy paper on status and availability of rare earth elements (REE) and energy critical elements (ECE).
The committee was chaired by the mines secretary and co-chaired by chairman of the Centre for Study of Science Technology (C-STEP). Members included senior officials and experts from the Department of Science & Technology (DST), the Geological Survey of India, the Bhabha Atomic Research Centre (BARC), the Department of Atomic Energy, the Defence Research & Development Organization (DRDO) and the chairman of India Rare Earth Ltd.
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The forward of the committee's report titled ''Rare Earths and Energy Critical Elements: a Roadmap and Strategy for India', published in July 2012, said: 'In view of the increased demand of REE and near monopoly of supply from China, there is a need to develop national policies and implementation strategies for ensuring indigenous supply of REE… A Steering Committee was constituted by the ministry of mines with the ultimate intention of preparing a strategy paper for the government, providing short, medium and long term options along with proposals for specific policy & legislative interventions.'
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The report was blunt about Beijing's approach.
'China has been the major supplier of rare earths all over the world. Even though it has only 37% of global RE resources, it has captured the worldwide market to the extent of 97%. The low cost and efficient production process enabled China to monopolize the rare-earth market, forcing rare earth operations around the world to close down. Indian Rare Earths Ltd (IREL), which was once a leader in export of rare earth compounds had to shut down its operation in 2008,' the report added.
'Over the last couple of years China has imposed restrictions and curtailed its export by over 30% citing domestic demands as the reason. This unexpected decline has restarted rare earth operations once again throughout the world,' the report said.
The same thing is happening again. Indian industries are suffering due to shortage of the critical minerals. According to a Reuters report published in Hindustan Times on Wednesday, automobile majors such as Maruti Suzuki have cut near-term production targets because of rare earth shortages.
'Government departments, particularly the ministry of commerce and industry, are holding hectic meetings with industry and other stakeholders to resolve the supply crisis. Government is using diplomatic channels asking Beijing to relax supply curbs for the Indian industries,' one of the people mentioned in the first instance said. The ministries of mines, commerce and external affairs did not respond to an email query on this matter.
China's curbs on exports of rare earth materials have been officially raised through diplomatic channels by India, especially in view of the impact on manufacturers of electric vehicles, people familiar with the matter said. The issue reportedly figured in a meeting between Indian ambassador Pradeep Rawat and China's vice foreign minister Sun Weidong in Beijing on June 5.
'China's move was primarily aimed at the US and the impact on India was collateral damage. We are hopeful that the matter will be resolved soon,' one of the people said.
It is not clear how China's deal with the US —the two countries reached a framework agreement that will now have to be approved by their respective Presidents —will affect this.
The matter is expected to figure in discussions during a visit to India by Sun Weidong, a former Chinese ambassador to New Delhi, beginning on Thursday, the people said. Sun is visiting India to continue discussions with foreign secretary Vikram Misri aimed at normalising bilateral ties following the end of the military face-off in the Ladakh sector of the Line of Actual Control (LAC) last October.
Auto manufacturers affected by the curbs on rare earth exports too have sought to reach out to Chinese authorities but without much success so far, the people said.
Two days after India and China reached an understanding on withdrawing forces from the two remaining 'friction points' on the LAC last October, Prime Minister Narendra Modi and President Xi Jinping met in the Russian city of Kazan and agreed to revive several mechanisms to restore normalcy in ties and to address the long-standing border dispute.
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Jayalalithaa Two years after stepping away from cinema and entering politics, Jayalalithaa — who had starred opposite M.G. Ramachandran (MGR) in 28 films — was fielded by the AIADMK in the Rajya Sabha biennial elections of March 1984. At the time, she was serving as the party's propaganda secretary. Her nomination was formally proposed by K. Rajaram, the then Speaker of the Tamil Nadu Assembly, while Chief Minister M.G.R. himself backed the candidature of Valampuri John. In a striking coincidence, Jayalalithaa was allotted seat number 185 in the Rajya Sabha — the same seat once held by former Chief Minister and DMK founder C.N. Annadurai, a renowned screenwriter, in 1963. 'Jayalalithaa stole the scene wherever she was. Her maiden speech in the Rajya Sabha was widely acclaimed for its clarity of diction and elegant prose. Khushwant Singh, a fellow member, gushed that here was a beauty with brains. 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In 1991, she united the party, led it to a sweeping electoral victory, and became the youngest Chief Minister of the State. Jayalalithaa remained a dominant force in Tamil Nadu politics until her death in office in December 2016. Vyjayantimala Bali Vyjayanthimala Bali, the earliest Tamil film heroine to make a successful foray into Hindi cinema (1955) was also an accomplished Bharatanatyam dancer and a prominent political figure. A member of the Congress, she was elected to the Lok Sabha from the Madras South constituency in 1984 and 1989. In August 1993, Vyjayanthimala was nominated to the Rajya Sabha, following in the footsteps of her contemporary Sivaji Ganesan. However, her tenure in the Upper House was not without frustrations. In 1994, she raised a grievance regarding her exclusion from the official list of Members of Parliament eligible to implement the Prime Minister's Local Area Development (MPLAD) scheme. In a telegram addressed to Rameshwar Thakur, then Union Minister of State for Rural Development, she wrote: 'Already seven months have passed. I am disillusioned at the indifferent attitude of your department. The purpose of the Prime Minister's scheme is nearing failure. Immediate action is necessary to include my name in the Tamil Nadu list and release the funds for implementation.' Disillusionment with the Congress eventually led her to part ways with the party. In 1999, she joined the BJP. Cho S. Ramaswamy Cho S. Ramaswamy — acclaimed Tamil film comedian, satirist, journalist, and political commentator — entered the Rajya Sabha in December 1999 as a nominated member. Though not affiliated with any political party, Cho was widely known for his alignment with right-wing politics and for his sharp, independent voice in public discourse. Joining him in the Upper House at the time was another iconic figure from the world of films — legendary playback singer Lata Mangeshkar. As a nominated member, Cho remained true to his forthright style and was unafraid to challenge dominant narratives. In 2003, he expressed frustration over being denied the opportunity to speak during a Rajya Sabha resolution that deplored the U.S. invasion of Iraq. Writing in The Hindu in April that year in an article titled 'Resolution Lacks Moral Authority,' he recalled: 'I was one of the members listed to speak on the resolution. The Chairman decided that from among the nominated members, only one would speak, and that was not me. When I pleaded that since mine might perhaps be the only voice against the resolution, I should be given an opportunity to express my views, I was told that opposing the resolution would be an insult to the Chair, since the resolution was in the name of the Chairman.' Cho passed away in December 2016. S.S. Chandran Two years after Cho S. Ramaswamy entered the Rajya Sabha, another comedian from Tamil cinema, S.S. Chandran, followed — but through a different route. Unlike Cho, Chandran was openly political. His career saw him move across party lines — from the DMK to Vaiko's MDMK, before finally settling in the AIADMK. Ironically, it was Chandran's sharp criticism of DMK leader M. Karunanidhi, whom he had once admired, that paved his way to the Upper House. In June 2001, when the Jayalalithaa government came under heavy fire for the controversial midnight arrest of Karunanidhi at his Oliver Road residence, Chandran emerged as one of the most vocal defenders of the Chief Minister's actions. His blunt and unwavering support did not go unnoticed. The following month, when biennial Rajya Sabha elections were announced, Jayalalithaa sprang a surprise by nominating Chandran as one of the AIADMK candidates. In an interview with The Hindu, Chandran remarked, 'As a comedian, I can make the Parliament laugh with my jokes and make my point heard with due attention. In this, my role model is Piloo Mody, who was one of the best speakers in Parliament.' Chandran passed away in October 2010. R. Sarath Kumar Tamil film star R. Sarath Kumar, known for his transformation from screen villain to hero, entered the Rajya Sabha in 2001, the same year as comedian S.S. Chandran. His nomination by the DMK came as a surprise — even to the actor himself. Just hours after Jayalalithaa announced her party's Rajya Sabha candidates, DMK leader M. Karunanidhi unveiled Sarath Kumar's name, catching political observers and the actor off guard. At the time, Sarath Kumar was busy shooting for the film Samudram at A.V.M. Studios. Having joined the DMK in 1998, Sarath Kumar had previously contested the Lok Sabha elections from Tirunelveli but lost. Still, his active involvement in the South Indian Film Artistes' Association, where he served as secretary, helped him gain political visibility. Reflecting on his nomination, he said: 'I strongly feel that my outspokenness, sincerity, and the boldness with which I approach a subject made Mr. Karunanidhi feel that I am the best choice for the MP's post.' He added that he intended to speak in Parliament about the controversial arrests of M. Karunanidhi and two Union Ministers on June 30, 2001. 'If an opportunity comes, my maiden speech in Parliament could be about the imposition of Article 356 (President's Rule) in Tamil Nadu,' he said. However, Sarath Kumar's political affiliations shifted over time. In 2006, he quit the DMK, later had a brief association with the AIADMK, and eventually launched his own party — the All India Samathuva Makkal Katchi. In 2024, he merged his outfit with the BJP. (Note: Another prominent Tamil film personality from outside the acting world to be nominated to the Rajya Sabha is music maestro Ilaiyaraaja in 2022.)
