India Developing Alternative Supply Chains

News: Commerce and Industry Minister Piyush Goyal stated that India is actively building alternative supply chains in response to China’s ban on rare earth exports, calling it a “wake-up call” for global overdependence on specific geographies.

The move has impacted India’s auto and white goods sectors, particularly due to restricted access to permanent magnets.

Goyal emphasized a multi-pronged approach—diplomatic engagement, alternative sourcing, and domestic innovation—to reduce reliance on China.

He expressed confidence in India’s medium-to-long-term resilience, highlighting increased private-sector support for local startups.

Meanwhile, the auto industry has urged faster import approvals as China controls nearly 90% of global magnet production, posing a significant supply chain risk for key manufacturing industries.