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Time of India
4 days ago
- Business
- Time of India
India Engages China on Rare Earths to Secure Industrial Supply Chain
India is engaged with China both commercially and diplomatically on the issue of rare earth minerals supply and is making all efforts to ensure essential imports, Commerce Secretary Sunil Barthwal said on Monday. The commerce secretary noted that the government is also in touch with industry organisations like SIAM and ACMA for impact on the auto sector. "We're engaged with SIAM and ACMA, facilitating them to have discussions with Chinese counterparts," the commerce secretary said. He noted that China's rare earth move was a global response, and not just against India. The Ministry of External Affairs (MEA) is also in touch with the Chinese government through various diplomatic channels. "We are in touch with the Chinese side, both here in Delhi as also in Beijing to bring predictability in supply chain for trade, consistent with international practices," Ministry of External Affairs Spokesperson Randhir Jaiswal told reporters last week. Commerce and Industry Minister Piyush Goyal recently described China's rare earth export restrictions as a global "wake-up call," 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 met 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. 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. Beyond China, there are only a few alternative suppliers. The new Chinese restrictions, effective from April 4, require special export licenses for certain specific rare earth elements and their related magnetic products. Separately, India and Central Asian countries -- Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and, Uzbekistan -- have recently expressed interest in joint exploration of rare earth and critical minerals at the recently held India-Central Asia Dialogue. Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist, according to a report by Crisil Ratings last week. The rating agency said this week that a disruption lasting more than a month can already impact electric vehicle (EV) launches, affect production, and weigh on the sector's growth momentum. Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion.
India Gazette
4 days ago
- Business
- India Gazette
India engaged with China on rare earth minerals both commercially, diplomatically
New Delhi [India], June 16 (ANI): India is engaged with China both commercially and diplomatically on the issue of rare earth minerals supply and is making all efforts to ensure essential imports, Commerce Secretary Sunil Barthwal said on Monday. The commerce secretary noted that the government is also in touch with industry organisations like SIAM and ACMA for impact on the auto sector. 'We're engaged with SIAM and ACMA, facilitating them to have discussions with Chinese counterparts,' the commerce secretary said. He noted that China's rare earth move was a global response, and not just against India. The Ministry of External Affairs (MEA) is also in touch with the Chinese government through various diplomatic channels. 'We are in touch with the Chinese side, both here in Delhi as also in Beijing to bring predictability in supply chain for trade, consistent with international practices,' Ministry of External Affairs Spokesperson Randhir Jaiswal told reporters last week. Commerce and Industry Minister Piyush Goyal recently described China's rare earth export restrictions as a global 'wake-up call,' 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 met 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. 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. Beyond China, there are only a few alternative suppliers. The new Chinese restrictions, effective from April 4, require special export licenses for certain specific rare earth elements and their related magnetic products. Separately, India and Central Asian countries -- Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and, Uzbekistan -- have recently expressed interest in joint exploration of rare earth and critical minerals at the recently held India-Central Asia Dialogue. Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist, according to a report by Crisil Ratings last week. The rating agency said this week that a disruption lasting more than a month can already impact electric vehicle (EV) launches, affect production, and weigh on the sector's growth momentum. Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. (ANI)
Indian Express
11-06-2025
- Business
- Indian Express
How India's development-centric approach to Central Asia marks a shift
Amid shifting dynamics in and around the Central Asian region – marked by Iran's entry into the Shanghai Cooperation Organization (SCO) and BRICS, and the Taliban's growing engagement with China, Iran, and now India – new opportunities are emerging for India to deepen its engagement with Central Asian Republics (CARs), especially in the development sector. Notably, the development sector emerged as the primary focus of discussions during the fourth meeting of the India-Central Asia Dialogue. This signals a departure from the earlier narrative between India and the region, which was largely dominated by Central Asian geopolitics, the new Great Game, oil and gas deals, and pipeline routes. The Dialogue, chaired by India's External Affairs Minister S Jaishankar and attended by the Foreign Ministers of Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, proved to be a valuable opportunity to showcase India's developmental strengths and the potential for linking them to Central Asia. Let's examine India's development-centric approach to the region, which has become noticeable in recent years, and explore how the India–Central Asia Dialogue evolved as a strategic tool for New Delhi. Central Asia has long been part of the Indian imagination due to historical civilisational linkages and cultural connections. After the Soviet Union break-up, new geopolitical realities and economic opportunities influenced India's approach to the region. The emergence of new independent states opened opportunities for energy imports as well as trade and transit. At the same time, concerns over rising religious fundamentalism, instability in Afghanistan and China's growing profile in the region further heightened India's strategic interest. After signing strategic partnerships with Kazakhstan (2009), Uzbekistan (2011) and Tajikistan (2012), India announced its 12-point 'Connect Central Asia' policy in 2012. The aim was to look at the region collectively in a more proactive manner and strengthen India's political, security, economic and cultural connections. In July 2015, Prime Minister Narendra Modi visited all five Central Asian states and signed 22 agreements. India's engagement deepened further when it became a full member of the SCO in 2017 and initiated the foreign minister-level 'India–Central Asia Dialogue' in 2019. The same year, India elevated relations with Kyrgyzstan to a strategic partnership. Despite close political and strategic ties with all Central Asian countries, India's commercial engagement with the region has remained limited. An unstable Afghanistan and strained India–Pakistan relations have obstructed direct connectivity. To address these challenges, New Delhi sought alternative routes by working with Russia and Iran through the International North–South Transport Corridor (INSTC) and its tributaries. Investments in Afghan infrastructure was also part of this broader strategy. The construction of the 218 km Zaranj–Delaram road in Afghanistan and the development of Chabahar Port in Iran were key initiatives aimed at facilitating India's access to Central Asia via Iran and Afghanistan's ring road. India's connectivity plans coincided with the US New Silk Road Initiative to connect Central Asia with South Asia via Afghanistan. The Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline project also remained a key focus for many years. However, the US withdrawal from Afghanistan and the return of the Taliban disrupted all these earlier narratives. In the meantime, China has expanded its presence in the region through trade and Belt and Road Initiative (BRI) projects. Kazakhstan and Kyrgyzstan are also part of the Russia-led Eurasian Economic Union. In this evolving regional context, development cooperation and capacity building have become central to India's engagement with Central Asia. To support this shift, India has established the India–Central Asia Development Group and the India–Central Asia Business Council. Additionally, a US$1 billion line of credit was launched to fund development projects in infrastructure, IT, energy, and agriculture. At the recent India-Central Asia Business Council, EAM Jaishankar outlined five key areas to strengthen linkages between the growing Indian economy and Central Asia. These included digital economy and innovation, financial services, healthcare and pharmaceuticals, enhancing connectivity, and streamlining transit procedures. The outcome of the Foreign Ministers' Dialogue also included the establishment of the India–Central Asia Digital Partnership Forum and India's offer of technical support for designing Universal Health Coverage (UHC) models in Central Asia. The Central Asian partners further agreed to work closely with India's Global South Centre of Excellence – DAKSHIN (Development and Knowledge Sharing Initiative), to exchange and learn from each other's development experiences. India has also offered to share its Digital Public Infrastructure (DPI) platforms, such as Aadhaar and DigiLocker, with Central Asian Countries. However, due to challenges related to direct connectivity and customs procedures, India's trade with Central Asia has remained limited to around US$2 billion in recent years. To strengthen these ties, it has been suggested to develop long-term cooperation in uranium, crude oil, gas, mining, coal, and fertilizers, along with facilitating payments in local currencies. Additionally, tourism and education have been identified as high-potential sectors for future growth. India imports significant quantities of uranium from Kazakhstan and Uzbekistan. During the meeting, Central Asian partners expressed interest in jointly exploring rare earth minerals. How have changing power dynamics in and around Central Asia – marked by Iran's entry into SCO and BRICS, and the Taliban's growing engagement with China, Iran, and now India – reshaped India's calculus in the region? To what extent can India's development-centric approach counterbalance China's economic influence in Central Asia, especially under the BRI framework? How has the India–Central Asia Dialogue evolved as a strategic tool for New Delhi's regional outreach in a post-US Afghanistan? Following the break-up of the Soviet Union, what were the factors that sharpened India's strategic interest in the Central Asia region? India announced its 12-point 'Connect Central Asia' policy in 2012. What was the aim of this initiative? Evaluate. (Gulshan Sachdeva is Chief Coordinator, DAKSHIN – Global South Centre of Excellence, RIS at New Delhi and Professor at the School of International Studies, Jawaharlal Nehru University) Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.
Time of India
11-06-2025
- Business
- Time of India
India closely watches US-China trade talks amid rare earth tensions
As trade negotiations between the United States (US) and China near a 90-day deadline, global concerns over rare earth supply chains are intensifying. The US has indicated a possible easing of technology export restrictions in exchange for improved access to rare earth shipments from China, but observers remain cautious about the likelihood of immediate progress. The rare earth dispute has prompted countries to reassess their reliance on Chinese supplies. The US has announced a $39 million investment to develop a domestic rare earth supply chain . India, while not directly involved in the negotiations, is exploring options to reduce its dependence on China, though progress remains limited. Industry impact and government response The Indian automobile and electronics sectors have started to feel the effects of supply constraints. Auto and smartphone manufacturers are reporting falling inventories of rare earth materials and magnets, with potential production cuts expected as early as June. A recent report by Crisil Ratings highlighted the risk to India's electric vehicle (EV) rollout, noting that several new EV models rely on permanent magnet synchronous motor (PMSM) platforms. While most automakers currently maintain four to six weeks of inventory, a continued shortage could impact production schedules from July. Maruti Suzuki is reported to be adjusting its production plans for its upcoming e VITARA model, reducing output targets for the July–September period due to shortages of rare earth magnets. Diversification efforts underway India has responded by stepping up support for Indian Rare Earths Limited and seeking international partnerships. At the India-Central Asia Dialogue held in New Delhi, India and five Central Asian countries expressed interest in collaborating on critical mineral exploration. They also proposed convening the India-Central Asia Rare Earth Forum to advance these discussions. While India is not a direct participant in the ongoing US-China talks, it is assessing the developments and evaluating potential strategies to secure its own rare earth supplies.
India Gazette
09-06-2025
- Business
- India Gazette
India to collaborate with Central Asian countries for exploration of rare earth, critical minerals
New Delhi [India], June 9 (ANI): India and Central Asian countries have expressed interest in joint exploration of rare earth and critical minerals at the recently held India-Central Asia Dialogue. The renewed expression of interest in collaboration in rare earths and critical minerals comes as China has restricted its exports of some key industrial inputs. According to a joint statement by India and Central Asian countries -- Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and, Uzbekistan -they appreciated the outcomes of the first India-Central Asia Rare Earth Forum held in September 2024 in New Delhi, as they called upon the relevant authorities to hold the second India-Central Asia Rare Earth Forum meeting at the earliest convenience. The foreign ministers of these countries, including India, also encouraged the exchange of delegations to explore new areas of cooperation in critical minerals. China produces around 90 per cent of the world's rare earths and only a few alternatives exist. The EV companies of India is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. A recent Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk. The Federation of Automobile Dealers Association (FADA), too, has echoed the sentiment. In its monthly vehicle data released on Friday, the FADA said, 'Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure.' On April 4, China imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons such as national security and international obligations such as non-proliferation. Although these curbs do not completely ban auto sector exports, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay to the supply process. According to a recent Reuters report, India is discussing with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, the Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. (ANI)
