With Trump's Tariff Tactics, India Seeks Rare Earth Self-Reliance, Kumaraswamy Reveals Big Push | Interview

Last Updated:August 07, 2025, 20:24 IST

The union minister detailed the roadmap ahead for India’s rare earth ecosystem in the exclusive interview

At present, mining and processing of rare earth oxides is being done by IREL only, which is under the administrative control of the Department of Atomic Energy (DAE), said Kumaraswamy. File pic/PTI

As global trade barriers harden and Trump-era tariff threats resurface, India is doubling down on self-reliance in critical sectors like rare earth elements.

Led by Prime Minister Narendra Modi and his office (PMO), the ministries of steel, mines, and heavy industries, along with the inter-ministerial coordination groups, are building a strategic roadmap to cut import reliance in rare earth processing and Rare Earth Permanent Magnet (REPM) manufacturing.

In an exclusive interview with News18, HD Kumaraswamy, union minister of heavy industries and steel, detailed the roadmap ahead for India’s rare earth ecosystem. Excerpts:

Beyond current mining operations, what strategic steps are being taken by the government to build a self-sustaining rare earth industry in India?

PM Modi has consistently emphasised the importance of self-reliance and self-sustainability in all cabinet meetings. Inspired by his vision, we have steadily and systematically embarked on the path toward technological sovereignty. Indian Rare Earths Limited (IREL), in association with Bhabha Atomic Research Centre (BARC) and Defence Metallurgical Research Laboratory (DMRL), has prepared a draft report titled “Incentivisation framework for establishing downstream industry using Rare Earth elements" and supported by NITI Aayog as well.

Based on the report, MHI, in consultation with NITI Aayog, is formulating a scheme to incentivise REPM manufacturing in the country. In this regard, MHI had conducted two industry stakeholder consultations on September 26 and June 17 and an inter-ministerial consultation with the ministry of mines on June 17.

Are there plans to secure rare earth magnets from non-China partner countries? If yes, which are these counties, and what possible quantity can be tapped?

As mentioned earlier, MHI has carried out two stakeholder consultations on September 26 and June 6 to work out gaps and disabilities and formulate the contours of a scheme to promote REPM manufacturing, which will help in developing indigenous manufacturing capacities and capabilities in the country. PM Modi has consistently guided inter-ministerial efforts, and it is due to his relentless commitment that we are steadily moving towards our goal.

IREL is the only miner and processor of REO (rare earth oxides). So, is there a plan to bring in more players and ensure a supply chain for REOs?

At present, mining and processing of rare earth oxides is being done by IREL only, which is under the administrative control of the Department of Atomic Energy (DAE). DAE is the sole authority to ensure a supply chain for REOs in the country and to allow new players to participate in this area.

Right now, most of the mines in India are yet to be at an exploratory stage, that is, mining and deposit verification, while extraction is yet to happen. How is MHI coordinating with the mines ministry to increase the number of mining block auctions and set the processing tech while speeding up deposit discovery and mining activities?

Mining block auctions, processing tech, deposit discovery and mining activities are under direct control of the ministry of mines. MHI had an inter-ministerial consultation with the ministry of mines, DAE, and ministry of commerce on June 17, wherein MHI requested the ministry of mines to explore the possibility of enhancing the availability of RE (rhenium) oxides in the country. DAE is also working on enhancing IREL’s capacity to produce REOs.

The MHI had planned a PLI. Which are these companies that have so far evinced interest in coming up with such plans? Any details on them?

MHI is working on an incentivisation framework to promote REPM manufacturing in the country, and for that, MHI had multiple consultations with the industry to assess the support required by the industry. Many companies related to auto and auto component manufacturing, defence, etc, have expressed their explicit interest in setting up an integrated REPM manufacturing facility in the country.

How will the PLI play out? Some scheme details could help…

The scheme to promote REPM manufacturing envisages incentives for REPM sales and capital subsidy to set up the integrated REPM manufacturing facility in the country.

Madhuparna Das

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...Read More

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...

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August 07, 2025, 20:24 IST

News india With Trump's Tariff Tactics, India Seeks Rare Earth Self-Reliance, Kumaraswamy Reveals Big Push | Interview

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