India’s dependence on China for rare earth and mining machinery has deepened

Rare earth machinery for India is also a concern

India’s reliance on China for rare earth and mining–related machinery has deepened sharply, with imports from northern neighbour more than quadrupling over the past seven years, according to a Moneycontrol analysis.

Imports of specialised equipment, some of which is also used in rare earth refining and production, including agitators, furnaces, electrolysers, and separation systems, rose from $263 million in FY18 to $1.1 billion in FY25, according to data from the Ministry of Commerce. China’s share in India’s total imports of such machinery climbed from 24.6 percent in FY18 to 44.6 percent in FY25, the highest in the period.

The growing dependence extends beyond raw materials to the tools required for processing them, underscoring the strategic challenge India faces in building its own rare earth value chain. China now accounts for nearly half of India’s imports of machines used in refining, separation, and magnet-making, technologies critical for clean energy, electric mobility, and defence manufacturing.

Magnet-making machinery drives surge

Among specific product categories, imports from China of specialised machinery, including sedimentation and crystallisation agitators, magnetron sputtering and coating systems, and winding and laminating machines used in rare earth magnet production, rose five-fold, from $159 million in FY18 to $864 million in FY25.

Imports of mixing paddles and industrial mixers also doubled to $170 million, while electrolysers used in metal extraction tripled to $32 million.

In the electrolyser segment, China overtook Japan and Germany to become India’s largest supplier, with its share in imports rising from 24 percent in FY19 to 44 percent in FY25.

Although China remains the top exporter of furnaces to India, its share has eased to 38.2 percent over the past three years, compared with 56 percent between FY18 and FY20, indicating a gradual diversification in this category.

Strategic implications

Overall, India imported $2.47 billion worth of rare earth and mining-linked machinery in FY25, up from $1.07 billion in FY18. Of this, $1.1 billion came from China, compared with just $263 million seven years earlier.

In October, China’s Ministry of Commerce and the General Administration of Customs announced new export controls on rare earth-related items through notifications 57, 58, and 61, tightening global access to refining technologies and equipment.

As India seeks to expand domestic exploration and processing of critical minerals, its technological and equipment ecosystem remains heavily dependent on China. With Beijing placing fresh export restrictions on such equipment, achieving Atmanirbharta (self-reliance) in critical minerals may prove far more challenging than anticipated.