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Budget 2026: How India Can Blunt China’s Rare Earth Minerals Dominance
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India holds an estimated 6-8% of global rare earth reserves but instead of exporting value-added products, the country largely exports concentrates and imports finished components
China controls around 70% of global rare earth mining and nearly 90% of refining and processing capacity. (Representational image)
Major global powers are investing billions of dollars to secure the supply chain of critical minerals, particularly rare earths, to cut their dependence on China. Against this backdrop, India is expected to move beyond policy intent and announce concrete measures on mining, processing and downstream manufacturing of rare earths in Budget 2026.
India holds nearly 6-8% of the world’s rare earth reserves, estimated at about 6.9 million tonnes, yet its share in global production is less than 1%. The contrast is stark. Despite sizeable reserves, India has failed to convert this advantage into strategic strength. The key question is whether Budget 2026 can translate this momentum into a full-fledged rare earths push and meaningfully reduce India’s dependence on China in what is fast emerging as the decade’s most critical resource contest.
Oil wells shaped global geopolitics in the 20th century. In the 21st, advanced electronics, electric vehicles (EVs), defence systems and the semiconductor industry depend almost entirely on rare earth minerals. Without these 17 elements including neodymium, dysprosium and lanthanum, wind turbines cannot spin and precision-guided missiles cannot function. Securing rare earth supplies has therefore become a strategic imperative for India. Major economies have already moved decisively. The European Union has committed €3 billion to cut reliance on China, while the United States is forging new mineral alliances and building industrial ecosystems.
China’s dominance
According to an ET Now report, China’s dominance in the sector is both overwhelming and unsettling. China controls around 70% of global rare earth mining and nearly 90% of refining and processing capacity. Last year, when China imposed export restrictions on seven key rare earth elements, global automobile and defence supply chains were jolted.
India’s efforts
India has initiated steps to reduce import dependence through the National Critical Mineral Mission (NCMM). However, industry leaders and policy experts argue that Budget 2026 must go further by lowering risks for private investment. The expectation is not limited to subsidies; the industry is seeking a comprehensive ecosystem that enables private capital to participate meaningfully. This would require long-term financing, targeted tax incentives, assured offtake arrangements and incentives across the value chain. Without these measures, India risks remaining stuck at the policy stage while global competitors race ahead.
Government’s expectations
China’s strength does not stem from cheap labour alone, but from decades of process engineering expertise and state-backed price controls. Experts say India must draw lessons from countries such as Australia and Japan, where governments actively partner with private firms to build strategic stockpiles. Market participants point to four key areas where government action is critical:
1. Financial incentives and expansion of PLI: The existing Rs 7,280-crore production-linked incentive (PLI) scheme for magnets is seen as a positive step, but experts say it must be extended upstream to cover oxide and metal manufacturing. Without domestic production of raw metals, magnet manufacturing in India will struggle to remain cost-competitive.
2. Tax holidays and long-term financing: Rare earth projects have long gestation periods, often taking years to reach profitability. The budget is expected to consider a 10 to 15-year tax holiday and access to low-interest, long-tenure loans to attract investors.
3. Plug-and-play hubs, on the lines of semiconductor clusters: The government is being urged to develop infrastructure hubs, particularly in coastal regions, with shared processing facilities. Such hubs could significantly lower costs for small and mid-sized developers.
4. Regulatory reforms: Industry has called for easing restrictions on monazite by delinking it from stringent nuclear regulations, improving transparency in commercial mining, and offering strategic relaxations under Coastal Regulation Zone (CRZ) norms.
Vedanta Resources CEO Deshani Naidu has said the government’s focus on critical minerals under the NCMM is providing much-needed impetus. Securing metals and minerals, she noted, is essential for India’s infrastructure build-out and energy transition.
Abundant reserves, extremely low production
India holds an estimated 6-8% of global rare earth reserves but instead of exporting value-added products, the country largely exports concentrates and imports finished components such as magnets and motors.
Abhinav Sengupta, Associate Director at PwC India, points out that India has the reserves but lacks the ecosystem. Mining, he says, is only the first step; the real challenge lies in processing, refining and separation. India also remains weak in midstream capabilities, particularly magnet manufacturing. Delays in beach sand mining due to radioactive thorium concerns and CRZ regulations, coupled with a shortage of expertise in rare earth chemistry and process engineering, have compounded the problem.
Monazite, India’s primary source of rare earths, is widely found in coastal beach sands across Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra and Gujarat, with additional inland deposits in Jharkhand and West Bengal. However, private participation was long barred under the Atomic Energy Act, with limited opening up only beginning in 2023. Long project timelines, heavy capital requirements, a lack of deposit-specific processing technologies and uncertain returns have continued to deter investors.
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January 16, 2026, 20:16 IST
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Ganga Expressway inaugurated by PM Modi: UP’s longest expressway between Meerut & Prayagraj; check travel time, route, speed limit – top facts & images – The Times of India
Ganga Expressway, the longest expressway so far in Uttar Pradesh, was inaugurated by Prime Minister Narendra Modi on Wednesday. The 594 kilometres long Ganga expressway is a six-lane expressway that aims to reduce the travel time between Meerut and Prayagraj to just 6 hours!Uttar Pradesh has over 60% of India’s total access-controlled expressway network. Recently, Chief Secretary Manoj Kumar pointed out that of the nearly 2,900 km of such highways across the country, close to 1,200 km are located in the state.Meerut District Magistrate and Collector Vijay Kumar Singh on Tuesday said the project has generated tremendous excitement among the public. He noted that the expressway will greatly enhance connectivity to Prayagraj as well as the state capital, Lucknow.Experts say the expressway’s length is particularly significant. According to the Department for Promotion of Industry and Internal Trade, road transport remains economically efficient for freight over distances of up to about 600 km, while rail becomes more viable beyond that point. At 594 km, the Ganga Expressway falls almost exactly within this crucial range for cargo movement.
How will the Ganga Expressway cut down travel time, what districts will it cover, what will be the toll policy, and what cost has it been constructed at? We take a look:
Ganga Expressway: Top Points About UP’s Longest Expressway
Travel time: One of its most noticeable benefits will be the sharp reduction in travel time. The trip between Meerut and Prayagraj, which currently takes around 10 to 12 hours, is likely to be cut to approximately 6 to 7 hours. Access from Delhi: For travellers from the Delhi-NCR region, access will be seamless through the Delhi-Meerut Expressway, followed by a short connecting link at Bijoli to join the Ganga Expressway.
Construction cost: Developed at an estimated cost of Rs 36,230 crore, the Ganga Expressway ranks among Uttar Pradesh’s most ambitious infrastructure initiatives. The Ganga Expressway stretches from Bijoli village in Meerut to Judapur Dandu village in Prayagraj.Speed limit: The expressway has been built for speeds of up to 120 kmph. The six-lane access-controlled expressway, has been designed with the provision for expansion to eight lanes.
Route & Districts covered: The expressway will pass through 12 districts: Meerut, Hapur, Bulandshahr, Amroha, Sambhal, Badaun, Shahjahanpur, Hardoi, Unnao, Rae Bareli, Pratapgarh and Prayagraj. In doing so, it will directly influence more than 500 villages along its alignment.Interchanges & amenities: Its connectivity is further strengthened by 21 interchanges that link the corridor with existing national highways and state roads.
The project also includes major river crossings, notably a 960-metre bridge over the Ganga and a 720-metre bridge across its tributary, the Ramganga. Both structures have been engineered to suit local flood conditions.To support travellers, the expressway will also feature nine public utility complexes equipped with fuel stations, rest areas and food courts.
Emergency Landing Strip: One of the expressway’s standout features is a 3.5-km emergency landing strip in Shahjahanpur district. Already tested by the Indian Air Force, this airstrip adds a strategic defence dimension to the project, enhancing national preparedness in addition to its economic significance, according to an official statement.Integration with other expressways: Ganga Expressway will eventually be integrated with existing and even upcoming corridors. These include the Agra-Lucknow Expressway, the Farrukhabad Link Expressway, the Jewar Link Expressway, and a proposed extension that will connect Meerut to Haridwar.According to reports, plans are underway to extend the expressway by around 146 kms up to Haridwar. This extension will pass through Amroha and Bijnor and cover more than 200 villages.
Toll: The project will be operated under a toll-based public-private partnership model. Adani Enterprises and IRB Infrastructure Developers have been awarded concession rights for a period of 30 years.For toll collection, two primary toll plazas will be set up at the main entry points in Meerut and Prayagraj. The final toll charges have not yet been announced, however officials have indicated that they are likely to be in line with other expressways in Uttar Pradesh. At present, four-wheelers pay around Rs 2 to Rs 3 per kilometre.
Stocks mostly advanced in Asia on Wednesday despite losses on Wall Street, while oil prices fell after the United Arab Emirates said it would leave Organisation of the Petroleum Exporting Countries (OPEC) in a blow to the powerful oil cartel.
US futures edged higher. Markets in Japan were closed for a holiday.
Elsewhere in Asia, South Korea’s Kospi rose 0.3 per cent to 6,657.40 and the Hang Seng in Hong Kong gained 1.4 per cent to 26,029.02. The Shanghai Composite index traded 0.3 per cent higher at 4,091.01.
Australia’s S&P/ASX 200 slipped 0.3 per cent, to 8,689.50.
Taiwan’s Taiex lost 0.6 per cent, and India‘s Sensex gained 0.4 per cent.
The price of a barrel of Brent crude oil to be delivered in June fell 0.5 per cent to $110.71 early Wednesday. Brent to be delivered in July dropped 0.6 per cent to $103.74. Brent oil was around $70 per barrel before the war began in late February.
Benchmark US crude fell 0.6 per cent to $99.32 a barrel.
The UAE’s departure from Opec, due to happen on Friday, has been closely watched by oil markets. Opec accounts for roughly 40 per cent of global oil output, and the UAE is one of Opec’s largest oil producers. It has pushed back against Opec production quotas in recent years, wanting to sell more oil to the rest of the world.
“The UAE’s exit will increase (oil) output,” ING Bank strategists Warren Patterson and Ewa Manthey wrote in a research note on Wednesday. “The UAE has been increasingly frustrated over recent years by its output being constrained by Opec production quotas, which have kept it well below its potential.”
But as US-Iran negotiations for a permanent end to the Iran war stalled and the Strait of Hormuz, where roughly one fifth of the world’s oil passed through before the war, was still largely closed, short term impacts on oil prices will still depend mainly on prospects for reopening the waterway, analysts said.
The UAE was the third largest oil producer within Opec before the Iran war. ING said its departure “will reduce Opec’s effectiveness in managing and influencing the global oil market through supply measures.”
Investors are also awaiting more updates on US-Iran peace talks, although limited progress has been made. Iran has offered to reopen the Strait of Hormuz if the United States lifts its blockade on its ports. So far, the US appears to be ruling out a deal that excludes the Islamic Republic’s nuclear programme.
The Federal Reserve is expected to announce a decision on interest rates later Wednesday.
On Tuesday, Wall Street retreated from its recent record highs. The benchmark S&P 500 fell 0.5 per cent from its latest all-time high to 7,138.80. The Dow Jones Industrial Average edged down 0.1 per cent to 49,141.93, and the technology-heavy Nasdaq composite dropped 0.9 per cent to 24,663.80.
Artificial intelligence-related stocks led the losses. Chip company Broadcom lost 4.4 per cent, Nvidia fell 1.6 per cent and Micron Technology lost 3.9 per cent. Alphabet, Amazon, Microsoft and Meta Platforms are reporting quarterly results on Wednesday.
In other dealings early Wednesday the US dollar rose slightly to 159.63 Japanese yen from 159.62 yen. The euro was trading at $1.1708, down from $1.1712.
The yield on the US 10-year Treasury remained at 4.35 per cent.
New Delhi: Maruti Suzuki had a record year in 2025-26 in terms of revenue and sales, but rising costs took a bite out of profits. The automaker posted consolidated revenue of over Rs 1.8 lakh crore, up 19.9% from the previous year, with total sales of 24.2 lakh vehicles. Net profit, however, barely moved – rising 1.2% to Rs 14,680 crore – as higher material, employee and depreciation costs ate into margins.The March quarter told a similar story: Revenue jumped 28.6% to Rs 52,462 crore, but net profit slipped 6.4% to Rs 3,659 crore.R C Bhargava, chairman, Maruti Suzuki India, said the auto industry is back in a growth phase, helped by stronger consumer demand and govt support, including lower taxes on small cars. He said Maruti expects to roll out about 2.5 lakh more vehicles this year as supply bottlenecks ease and new capacity comes online. The bigger constraint right now, he said, is not whether people want to buy cars but how many the company can actually make. Maruti is adding new production lines that will bring roughly 5 lakh additional units of annual capacity this year.
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Ganga Expressway inaugurated by PM Modi: UP’s longest expressway between Meerut & Prayagraj; check travel time, route, speed limit – top facts & images – The Times of India
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