India Faces Wake-Up Call as China Tightens Grip on Critical Mineral Exports

China's export restrictions on critical minerals vital for India's electronics industry have moved from mere caution to an urgent wake-up call, underscoring New Delhi's need for immediate action. The Global Trade Research Initiative (GTRI) emphasized the necessity for measures like reverse-engineering of low- to mid-tech imports, aiming to curtail India's reliance on Beijing.

In deliberate steps, China has increased its economic leverage to hamper India's industrial growth, as noted by GTRI. Over the past year, Beijing has gradually limited exports of crucial raw materials and engineering assistance, sending New Delhi a stark warning amidst escalating geopolitical tensions and shifting trade relations.

Since mid-2023, China has restricted exports of key minerals like gallium and germanium, essential for India's electronics, electric vehicle, and defense sectors. The curbs extended to graphite in late 2024, hitting India's clean energy and battery manufacturing industries hard. With growing strategic ambiguity citing national security, Beijing has tightened control over supply chains that India heavily depends on.

(With inputs from agencies.)