Business
Budget 2026: How India Can Blunt China’s Rare Earth Minerals Dominance
Last Updated:
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.
Click here to add News18 as your preferred news source on Google.
January 16, 2026, 20:16 IST
Read More
Last Updated:
On International Women’s Day 2026, Equirus Wealth reports Indian women investors’ shift from fixed deposits and gold to equity mutual funds.
Women investors are steadily reshaping India’s financial landscape, with rising participation in stocks, mutual funds, and digital investing platforms.
On International Women’s Day 2026, a key trend of behavior change among female investors has emerged over the past five years, particularly in their investment choices across various financial products. Women are now more confident while investing in high risk but rewarding equity market, as the portfolio allocation in equity mutual funds surged from 10 per cent to 32 per cent, while down from 40 per cent to 20 per cent in Fixed Deposits (FDs).
The five-year study on women investors and relationship managers was conducted by Equirus Wealth Limited, and was published in a report titled “Expanding Horizons: Changing Wealth Management Behaviours of Indian Women – Qualitative Analysis of Investor Evolution Across Age and Affluence.”
The study reveals that women investors are increasingly moving away from episodic product purchases such as fixed deposits, gold and property towards diversified, allocation-driven portfolios anchored around long-term financial goals.
This reflects the major behavioural change from ‘safety-first’ investing to allocation-driven portfolio strategies.
Female Investors Adopting AI Cautiously
According to the report ,Artificial Intelligence may dominate global investment conversations, but Indian women investors are adopting it cautiously. They are using AI primarily as research and learning tool rather than for autonomous investment decisions.
Not Panicking During Corrections
Another interesting thing being revealed by the study is that 70-90% of investors hold or review their investments during market corrections rather than exiting in panic, showing maturity during market cycles.
At the same time, around 55% selectively add capital during market dips, reflecting growing conviction and a longer-term approach to investing.
Rise of “bucket investing”
Investors are increasingly dividing portfolios into buckets like safety, growth, liquidity and legacy instead of buying random financial products.
Risk is no longer seen only as loss of capital.
Investors now also consider inflation, goal failure, and portfolio drawdowns as risks.
75–90% are discussing intergenerational wealth transfer and financial discipline for the next generation.
Click here to add News18 as your preferred news source on Google.
Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
March 08, 2026, 14:14 IST
Read More
Last Updated:
Gold is sold at a discount in Dubai due to Middle East conflict disrupting flights. Traders offer up to $30 per ounce less than London prices.
Dubai Gold Selling Cheaper As Iran War Grounds Flights
Gold is being sold at a discount in Dubai as the widening conflict in the Middle East disrupts flights and hampers the movement of bullion from one of the world’s key trading hubs.
According to a Bloomberg report, traders in Dubai are offering discounts of up to $30 per ounce compared to the global benchmark price in London. The unusual price cut comes as shipments remain stranded due to flight disruptions triggered by the escalating conflict involving Iran and Israel.
Dubai is a key global centre for refining and exporting gold to markets across Asia, including India. However, partial airspace restrictions and heightened security risks have slowed the movement of bullion out of the region.
Why Gold Is Being Sold Cheaper
Gold is typically transported in the cargo holds of passenger aircraft. With several flights from the UAE restricted amid regional tensions, traders are struggling to move bullion to international markets.
At the same time, insurance and freight costs have surged, making shipments more expensive and uncertain. Many buyers have therefore stepped back from placing new orders, unwilling to bear high logistics costs without assurance of timely delivery.
To avoid paying prolonged storage and financing costs while shipments remain stuck, some traders are offering gold at discounted prices.
Although transporting bullion by road to airports in neighbouring countries such as Saudi Arabia or Oman is theoretically possible, logistics firms are reluctant due to the risks and complications of moving high-value cargo across land borders during a conflict.
What It Means For India
India, one of the largest buyers of gold shipped from Dubai, could face short-term supply disruptions if the situation continues.
Renisha Chainani, head of research at Augmont Enterprises Ltd., said several cargo shipments have already been delayed, creating temporary tightness in the availability of physical bullion in India.
However, industry experts as reported by Bloomberg say the immediate impact may remain limited as domestic inventories are currently comfortable after heavy imports earlier this year.
Chirag Sheth, principal consultant for South Asia at Metals Focus, said Bloomberg that India has ample stocks for now, but warned that prolonged disruptions could eventually affect supply if the conflict continues for several months.
Meanwhile, global gold prices have surged this year amid geopolitical uncertainty, with spot gold recently trading above $5,000 per ounce.
Click here to add News18 as your preferred news source on Google.
Follow News18 on Google. Join the fun, play games on News18. Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. To Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated.
March 08, 2026, 10:03 IST
Read More
Some seven in 10 British adults without a full driving licence say learning to drive is currently unaffordable, according to a survey.
The figure is even higher among younger people, with 76% of 18 to 29-year-olds without a licence saying driving lessons are financially out of reach, the poll for car insurer Prima found.
Overall, 38% said the cost of driving lessons was the biggest deterrent to learning to drive.
Some 32% were put off by the price of buying a car and 15% said the cost of car insurance was the main barrier to learning to drive.
Almost half (45%) said they would consider learning to drive if it became significantly cheaper.
Nick Ielpo, UK country manager at Prima, said: “For a growing number of people, driving is no longer a symbol of freedom – it’s a financial stretch too far.
“Between lessons, buying a car and insuring it, the upfront and ongoing costs are pricing many people out before they even start.”
Find Out Now surveyed 1,134 adults who do not hold a full driving licence between January 21 and 23.
Women’s Day 2026: Female Investors Cut FD Allocation From 45% To 20%, Boost Equity Funds
Prince William, Kate declare distance from Beatrice, Eugenie at royal event
President Pezeshkian’s gesture to neighbors immediately killed by Trump: Iran FM
-
Sports1 week agoLPGA legend shares her feelings about US women’s Olympic wins: ‘Gets me really emotional’
-
Entertainment1 week agoPakistan’s semi-final qualification scenario after England defeat New Zealand
-
Fashion1 week agoSouth Korea’s Misto Holdings completes planned leadership transition
-
Entertainment1 week agoBobby J. Brown, “The Wire” and “Law & Order: SUV” actor, dies of smoke inhalation after reported fire
-
Business1 week agoGreggs to reveal trading amid pressure from cost of living and weight loss drugs
-
Business1 week agoCNBC To Merge TV And Digital News Operations, Nearly A Dozen Jobs To Be Cut: Report
-
Entertainment1 week agoWhat’s new in Pokémon? Every game, update, surprise from 30th anniversary event
-
Fashion1 week agoItaly’s Moncler FY25 revenue reaches $3.69 bn with resilient margins