India Launches Rare Earths Development Plan: A Strategic Move Toward Resource Security

Written By: Editor | Updated: June 28, 2025, 10:11 am IST | Category: National News Indian Economy Indian Geography | Views: 742 views

India has taken a major strategic step by launching a comprehensive Rare Earths Development Plan, aimed at reducing the country’s dependence on imports and boosting domestic manufacturing of high-tech critical components. The initiative is expected to run through 2032, marking a bold shift in India’s industrial and strategic resource policy. India is launching a Rs. 3,500–5,000 crore (US$ 404–577 million) scheme aimed at boosting domestic production of rare earth minerals and the permanent magnets derived from them.

Table of Contents

1 🔎 What Are Rare Earth Elements (REEs)?
2 🇮🇳 India’s Rare Earth Potential
3 🛠️ Key Features of India’s Rare Earths Development Plan
4 🌍 Why This Plan Matters Now
5 📈 Economic & Strategic Benefits
6 🧭 Way Forward
7 ✅ UPSC Relevance
- 7.1 Important Government Links and Press Release
8 📌 Suggested Keywords to Explore this Topic

🔎 What Are Rare Earth Elements (REEs)?

Rare earth elements are a group of 17 chemically similar metallic elements crucial for the production of:

Electric vehicles (EVs)
Wind turbines
Solar panels
Mobile phones
Defense and aerospace systems
Permanent magnets used in motors and batteries

Despite being called “rare,” these elements are relatively abundant but rarely found in concentrated, economically viable deposits.
india rare earths limited

🇮🇳 India’s Rare Earth Potential

India holds the fifth-largest reserves of rare earth elements in the world, especially in coastal and monazite-rich regions such as:

Odisha
Kerala
Tamil Nadu
Andhra Pradesh

However, India contributes less than 2% to global rare earth production due to under-exploration, outdated technologies, and limited private investment.

🛠️ Key Features of India’s Rare Earths Development Plan

National Rare Earth Mission (NREM): A 7-year program led by the Ministry of Mines and DAE to build an integrated REE ecosystem.
Public-Private Partnerships (PPP): Open participation for private players in mining and value chain processing.
Strategic Reserves: Stockpiling of critical rare earths to ensure supply chain stability.
Research & Development: Funding to CSIR, IITs, and BARC for eco-friendly extraction technologies.
Export Diversification: Goal to become a net exporter of value-added REE products by 2030.
Alignment with National Missions: Supports ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.

🌍 Why This Plan Matters Now

Currently, China dominates over 85% of global rare earth supply. With rising geopolitical risks and China’s export limitations, countries like India are seeking to secure their own resources.

As global demand surges for clean energy, electronics, and defense systems, rare earth security becomes essential for India’s economic and strategic future.

📈 Economic & Strategic Benefits

Benefit	Description
Boost to Manufacturing	Catalyzes sectors like EVs, electronics, and green energy.
Import Reduction	Decreases reliance on Chinese imports and global price shocks.
Job Creation	Generates employment across mining, R&D, and production units.
Geo-strategic Leverage	Positions India as a global supplier of critical resources.
Environmental Sustainability	Focus on clean technologies and green extraction methods.

🧭 Way Forward

The Rare Earths Development Plan is a step toward technological sovereignty and economic transformation. For successful implementation, India must ensure:

Transparent and investor-friendly regulations
Robust environmental safeguards
Efficient coordination among central and state agencies
Strong focus on innovation and global competitiveness

With global economies shifting toward sustainability and digital infrastructure, India’s rare earth strategy could redefine its role in the global supply chain.