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India Gazette
19 hours ago
- Business
- India Gazette
India building alternative supply chain on rare earth amid curbs by China: Piyush Goyal
Bern [Switzerland], June 10 (ANI): Commerce and Industry Minister Piyush Goyal described China's rare earth export restrictions as a global 'wake-up call' on Monday, emphasising that India is actively building alternative supply chains while positioning itself as a trusted partner for international businesses seeking to reduce their dependence on Chinese suppliers. Speaking to reporters during his official visit to Switzerland, where he metwith Swiss government officials and business leaders, Goyal acknowledged that China's export curbs will create short-term challenges for India's automotive and white goods sectors. However, he expressed confidence that collaborative efforts between government, industry, and innovators will transform these challenges into long-term opportunities. The minister outlined a comprehensive strategy to address the crisis, including diplomatic engagement through the Indian embassy's ongoing dialogue with Chinese authorities and the commerce ministry's efforts to identify alternative supply sources. The government is also strengthening Indian Rare Earths Limited by providing necessary resources to accelerate domestic production capabilities. 'This situation serves as a wake-up call for all those who have become over-reliant on certain geographies,' Goyal emphasised. 'It's a wake-up call for the whole world that you need trusted partners in your supply chain.' The automotive industry has specifically requested government assistance in expediting approval processes for importing rare earth magnets from China, which are essential components in passenger vehicles and various automotive applications. China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems. The new Chinese restrictions, effective from April 4, require special export licenses for seven specific rare earth elements and their related magnetic products. '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,' Goyal explained. 'Some companies have submitted their applications, and we hope that pragmatic considerations will prevail and they will receive the necessary approvals.' When questioned about potential government intervention through production-linked incentive schemes, Goyal reported encouraging discussions with automotive manufacturers. The companies have expressed strong confidence in their ability to address these supply chain challenges through partnerships with domestic innovators and startups. 'They are actively engaging with our innovators and startups, indicating they will provide any necessary funding or pricing adjustments to encourage faster rollout and growth of this sector,' the minister noted. He praised the evolving mindset within Indian industry, observing that companies are moving beyond traditional dependence on government subsidies. 'More and more Indian industry is coming out of the old mindset that government subsidies and support alone will run our operations. They are becoming bigger and bolder in their approach.' Goyal highlighted ongoing technological developments that could provide alternative solutions to Chinese rare earth dependencies. 'There are some technologies that India is developing,' he noted, emphasising the collaborative approach involving government, industry, startups, and innovators. 'We are all working as a team and remain confident that while there may be challenges in the short run, we will emerge as winners in the medium to long term,' he stated. The minister viewed the current disruption as presenting strategic opportunities for India's manufacturing ecosystem. He believes it will accelerate recognition of the importance of self-reliance and the value of establishing trustworthy supply chain partnerships. 'There is an opportunity even in this crisis and challenge,' Goyal observed. 'More and more companies, businesses, and people in India will recognise that it is important to be self-reliant and to have trusted partners in supply chains. Increasingly, the world today wants India to be part of their supply chain because we are seen as a trusted partner.' (ANI)
Time of India
21 hours ago
- Business
- Time of India
India responds to China's rare earth export curbs: Goyal calls it a ‘wake-up call' for world
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)
Time of India
a day ago
- Business
- Time of India
China's rare earth curbs a 'wake-up call' as India builds alternative supply chains: Piyush Goyal
Commerce and Industry Minister Piyush Goyal described China's rare earth export restrictions as a global "wake-up call" on Monday, emphasising that India is actively building alternative supply chains while positioning itself as a trusted partner for international businesses seeking to reduce their dependence on Chinese suppliers. Speaking to reporters during his official visit to Switzerland, where he meets with Swiss government officials and business leaders, Goyal acknowledged that China's export curbs will create short-term challenges for India's automotive and white goods sectors. However, he expressed confidence that collaborative efforts between government, industry, and innovators will transform these challenges into long-term opportunities. The minister outlined a comprehensive strategy to address the crisis, including diplomatic engagement through the Indian embassy's ongoing dialogue with Chinese authorities and the commerce ministry's efforts to identify alternative supply sources. The government is also strengthening Indian Rare Earths Limited by providing necessary resources to accelerate domestic production capabilities. "This situation serves as a wake-up call for all those who have become over-reliant on certain geographies," Goyal emphasised. "It's a wake-up call for the whole world that you need trusted partners in your supply chain." The automotive industry has specifically requested government assistance in expediting approval processes for importing rare earth magnets from China, which are essential components in passenger vehicles and various automotive applications. Live Events China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems. The new Chinese restrictions, effective from April 4, require special export licenses for seven specific rare earth elements and their related magnetic products. "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," Goyal explained. "Some companies have submitted their applications, and we hope that pragmatic considerations will prevail and they will receive the necessary approvals." When questioned about potential government intervention through production-linked incentive schemes, Goyal reported encouraging discussions with automotive manufacturers. The companies have expressed strong confidence in their ability to address these supply chain challenges through partnerships with domestic innovators and startups. "They are actively engaging with our innovators and startups, indicating they will provide any necessary funding or pricing adjustments to encourage faster rollout and growth of this sector," the minister noted. He praised the evolving mindset within Indian industry, observing that companies are moving beyond traditional dependence on government subsidies. "More and more Indian industry is coming out of the old mindset that government subsidies and support alone will run our operations. They are becoming bigger and bolder in their approach." Goyal highlighted ongoing technological developments that could provide alternative solutions to Chinese rare earth dependencies. "There are some technologies that India is developing," he noted, emphasising the collaborative approach involving government, industry, startups, and innovators. "We are all working as a team and remain confident that while there may be challenges in the short run, we will emerge as winners in the medium to long term," he stated. The minister viewed the current disruption as presenting strategic opportunities for India's manufacturing ecosystem. He believes it will accelerate recognition of the importance of self-reliance and the value of establishing trustworthy supply chain partnerships. "There is an opportunity even in this crisis and challenge," Goyal observed. "More and more companies, businesses, and people in India will recognise that it is important to be self-reliant and to have trusted partners in supply chains. Increasingly, the world today wants India to be part of their supply chain because we are seen as a trusted partner." (ANI)
India Gazette
a day ago
- Business
- India Gazette
China's rare earth curbs a 'wake-up call' as India builds alternative supply chains: Piyush Goyal
Bern [Switzerland], June 10 (ANI): Commerce and Industry Minister Piyush Goyal described China's rare earth export restrictions as a global 'wake-up call' on Monday, emphasising that India is actively building alternative supply chains while positioning itself as a trusted partner for international businesses seeking to reduce their dependence on Chinese suppliers. Speaking to reporters during his official visit to Switzerland, where he meets with Swiss government officials and business leaders, Goyal acknowledged that China's export curbs will create short-term challenges for India's automotive and white goods sectors. However, he expressed confidence that collaborative efforts between government, industry, and innovators will transform these challenges into long-term opportunities. The minister outlined a comprehensive strategy to address the crisis, including diplomatic engagement through the Indian embassy's ongoing dialogue with Chinese authorities and the commerce ministry's efforts to identify alternative supply sources. The government is also strengthening Indian Rare Earths Limited by providing necessary resources to accelerate domestic production capabilities. 'This situation serves as a wake-up call for all those who have become over-reliant on certain geographies,' Goyal emphasised. 'It's a wake-up call for the whole world that you need trusted partners in your supply chain.' The automotive industry has specifically requested government assistance in expediting approval processes for importing rare earth magnets from China, which are essential components in passenger vehicles and various automotive applications. China's overwhelming control of global rare earth processing - commanding over 90 per cent of the world's magnet production capacity - has created significant vulnerabilities for industries worldwide. These materials are critical across multiple sectors, including automobiles, home appliances, and clean energy systems. The new Chinese restrictions, effective from April 4, require special export licenses for seven specific rare earth elements and their related magnetic products. '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,' Goyal explained. 'Some companies have submitted their applications, and we hope that pragmatic considerations will prevail and they will receive the necessary approvals.'When questioned about potential government intervention through production-linked incentive schemes, Goyal reported encouraging discussions with automotive manufacturers. The companies have expressed strong confidence in their ability to address these supply chain challenges through partnerships with domestic innovators and startups. 'They are actively engaging with our innovators and startups, indicating they will provide any necessary funding or pricing adjustments to encourage faster rollout and growth of this sector,' the minister noted. He praised the evolving mindset within Indian industry, observing that companies are moving beyond traditional dependence on government subsidies. 'More and more Indian industry is coming out of the old mindset that government subsidies and support alone will run our operations. They are becoming bigger and bolder in their approach.' Goyal highlighted ongoing technological developments that could provide alternative solutions to Chinese rare earth dependencies. 'There are some technologies that India is developing,' he noted, emphasising the collaborative approach involving government, industry, startups, and innovators. 'We are all working as a team and remain confident that while there may be challenges in the short run, we will emerge as winners in the medium to long term,' he stated. The minister viewed the current disruption as presenting strategic opportunities for India's manufacturing ecosystem. He believes it will accelerate recognition of the importance of self-reliance and the value of establishing trustworthy supply chain partnerships. 'There is an opportunity even in this crisis and challenge,' Goyal observed. 'More and more companies, businesses, and people in India will recognise that it is important to be self-reliant and to have trusted partners in supply chains. Increasingly, the world today wants India to be part of their supply chain because we are seen as a trusted partner.' (ANI)
