China’s export restrictions on rare earth magnets have had a sudden impact on India’s burgeoning electronics manufacturing, as the country doesn’t manufacture them. 

Assorted critical minerals and rare earth elements are the cornerstones of the high-tech manufacturing sector that India is focusing on to accelerate growth and create jobs. These minerals serve as the building blocks for power windows, electric vehicle (EV) batteries, renewable energy storage systems, semiconductor manufacturing, defence production, and much more.

That is why globally, critical minerals are the most sought-after resources now and are even defining geopolitics. In fact, China’s move in April to tighten export restrictions on a host of rare earth elements has hit supply chains across many parts of the world, and the US, seemingly a prime target, is seriously impacted. For India, the China episode, however, has also exposed how under-prepared the country is in ensuring the supplies of these resources.