New Delhi, July 28
Amid the exports ban by China on rare earth magnets, the active participation of state governments in India in encouraging rare earth exploration and processing can contribute to regional economic development and self sufficiency in critical mineral value chains, an SBI Research report said on Monday.
The imports of rare earth magnets averaged $249 million in last four years. In FY25, magnet imports were $291 million — highest in last four years.
“Our analysis indicates sectors impacted by ban are – Transport Equipment, Basic Metals, Machinery, Construction and Electrical and Electronics. Both domestic production and exports will be impacted,” said Dr Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India.
The government launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector with total funds allocation of Rs 18,000 crore for the period 2025-31.
Domestic value-chain creation in critical minerals will require state government participation. Many states have issued Notice Inviting Tenders (NIT) for the auction of Exploration License (EL)
The Industrial Policy Resolution 2022 of Odisha government recognises Rare Earth Minerals based value-added products as a priority sector under the policy. Odisha Government has approved Rs 8,000 crore titanium facility in Ganjam to boost high-tech manufacturing.