India Seeks Swift Resolution to China’s Rare Earth Export Curbs: MEA Steps In to Secure Supply Chain Stability
In a significant development amid growing global concerns over access to critical minerals, India’s Ministry of External Affairs (MEA) has confirmed that it is actively engaging with China to resolve the issue of export restrictions imposed by Beijing on rare earth magnets. The announcement was made during the MEA’s weekly media briefing on Thursday, where spokesperson Randhir Jaiswal highlighted the urgency of restoring predictability to supply chains affected by the Chinese decision.
Background: China’s Export Curbs
On April 4, 2025, China’s Ministry of Commerce and General Administration of Customs announced new export restrictions on specific rare-earth-related items, including rare earth magnets — vital components used in advanced technologies such as electric vehicles, wind turbines, mobile phones, military equipment, and medical devices. These restrictions are widely seen as part of China’s broader strategy to exert more control over its strategically important mineral resources and gain leverage in global trade.
As the world’s largest producer of rare earth elements, China accounts for over 85% of global supply. Any disruption in Chinese exports, therefore, has significant implications for manufacturing and high-tech industries worldwide, including in India.
India’s Diplomatic Response
Reacting to the development, MEA spokesperson Randhir Jaiswal emphasized the Indian government’s proactive stance. “We remain in touch with the Chinese side, in Beijing as well as in Delhi, to bring predictability in the supply chain,” he stated, acknowledging the impact the restrictions could have on India’s manufacturing and energy sectors.
India has sought to convey the importance of reliable and transparent trade practices in line with international norms. The MEA stressed that maintaining consistent supply chains is crucial not only for bilateral trade but also for regional and global economic stability.
Strategic Importance of Rare Earths
Rare earth magnets, particularly neodymium-iron-boron (NdFeB) magnets, are indispensable for high-performance applications. As India aims to expand its electric vehicle manufacturing, renewable energy installations, and defense technology, a stable supply of rare earth elements becomes increasingly essential.
India has limited domestic reserves of rare earths, most of which are processed abroad due to a lack of advanced refining capacity. The current curbs have intensified calls for India to diversify its sourcing, invest in indigenous production, and strengthen bilateral ties with alternative suppliers like Australia, the United States, and Vietnam.
Ongoing Efforts and Future Outlook
The MEA’s intervention is part of a broader government push to secure access to critical minerals through diplomatic channels and trade partnerships. India has already signed several MoUs with countries rich in rare earths, and policy reforms are being considered to boost domestic exploration and processing capacity.
In addition, India is working closely with its Quad partners — the United States, Japan, and Australia — under various frameworks to ensure resilient and secure supply chains for strategic materials.
While the exact impact of China’s export restrictions is yet to fully materialize, India’s early diplomatic engagement signals its commitment to mitigating disruptions and protecting its industrial growth trajectory.
As global competition for rare earths intensifies, India’s diplomatic and strategic measures will be critical in navigating uncertainties. The MEA’s engagement with China reflects a pragmatic approach aimed at maintaining economic stability and safeguarding national interests. Whether through negotiations, diversification, or domestic innovation, India’s response to the rare earth challenge will shape its industrial future in the years to come.