India Eyes Strategic Shift Amid China's Rare Earth Export Curbs

India's Commerce and Industry Minister, Piyush Goyal, has described China's recent restrictions on rare earth exports as a significant global 'wake-up call,' urging a strategic shift towards alternative supply chains. Speaking during his visit to Switzerland, Goyal underscored India's proactive measures to position itself as a trusted partner for international businesses aiming to reduce dependency on Chinese suppliers.

While acknowledging short-term disruptions in the automotive and white goods sectors, the minister expressed optimism about turning these challenges into long-term opportunities through collaborative efforts among government, industry, and innovators. Goyal highlighted the government's initiatives, including diplomatic engagements and strengthening domestic production through Indian Rare Earths Limited, to mitigate the impact of China's export curbs.

China's dominance in rare earth processing, controlling over 90% of global magnet production, poses vulnerabilities for various industries. Goyal emphasized the need for India to capitalize on this situation by fostering technological developments and partnerships with startups. He suggested that the crisis could bolster India's self-reliance and recognition as a valued participant in global supply chains.

(With inputs from agencies.)