Union Minister Jitendra Singh informed Parliament that India possesses around 8.52 million tonnes of rare earth reserves, yet continues to rely on imports for key rare earth-based products.
Major Deposits Across Key States
A significant portion of India’s rare earth resources is found in monazite mineral deposits, estimated at 7.23 million tonnes, spread across:
- Andhra Pradesh
- Odisha
- Tamil Nadu
- Kerala
- West Bengal
- Jharkhand
- Gujarat
- Maharashtra
Additionally, 1.29 million tonnes of rare earth resources have been identified in rock formations in Gujarat and Rajasthan.
Why India Still Depends on Imports
Despite abundant reserves, India faces several challenges:
- Low-grade ore quality
- Presence of radioactivity, making extraction costly
- Strict environmental norms, including Coastal Regulation Zone (CRZ) restrictions
- Limited mining due to forest and mangrove protection
- Lack of midstream industries (metal, alloy, and magnet manufacturing)
Government Push to Boost Domestic Capacity
To reduce import dependence, the government approved a major scheme in November 2025 with an outlay of ₹7,280 crore to develop rare earth magnet manufacturing.
Key highlights:
- Target: 6,000 metric tonnes annual production capacity
- ₹6,450 crore as incentives
- ₹730 crore as capital support
Strategic Manufacturing Initiatives
A specialized plant has been set up in Andhra Pradesh to produce:
- Samarium-Cobalt magnets (3 tonnes annually)
These are crucial for defence and nuclear applications.
Rare Earth Corridor Announced
In the Union Budget 2026–27, the government announced a “Rare Earth Corridor” across:
- Odisha
- Kerala
- Andhra Pradesh
- Tamil Nadu
This aims to strengthen the entire value chain from mining to manufacturing.
Critical for Future Technologies
Experts emphasize that rare earth magnets are essential for:
- Electric Vehicles (EVs)
- Renewable energy systems
- Electronics and semiconductors
- Aerospace and defence
