Govt striving to resolve China’s rare earth import issue for India: Commerce Secretary

The Ministry of Commerce and Industry and the Ministry of External Affairs are making all efforts to ensure that essential imports of rare earth magnets resume in India amid an export ban by China, commerce secretary Sunil Barthwal said on June 16.

Talking to reporters at a trade data briefing, Barthwal said China's move to control exports of rare earth magnets was a global response, and not just targeted against India. "The rare earth magnets issue is impacting the auto sector more, which is why we are engaged with Society of Indian Automobile Manufacturers and the Automotive Component Manufacturers Association of India. Commerce ministry is facilitating them to have discussions with their Chinese counterparts," he said adding that both diplomatic and commercial discussions are going on with China on the issue.

China has brought a regime where "perhaps licences will be required, so we are facilitating our importers and our auto players in whatever way possible", Barthwal said.

The number of Indian companies seeking import licences from Beijing have doubled in just two weeks. As of mid-June, 21 Indian firms, up from 11, have applied to China’s commerce ministry for permits to import medium and heavy rare earth magnets