Centre working on steps to boost rare earth supply chain: Piyush Goyal

Commerce minister Piyush Goyal says India is building resilient supply chains and negotiating pacts with Chile and Peru to boost access to rare earth minerals

Commerce and Industry Minister Piyush Goyal on Friday said the government is working on measures to improve supply of rare earth minerals.

 

This includes negotiating trade pacts with Chile and Peru while emphasising on the importance of assessing and strengthening supply chains to ensure long-term resilience.

 

“Look at Chile and Peru, think about it. Why am I doing a free trade agreement (FTA) with them in the first place? It gives you the answer,” the minister said, in the context of steps being taken by the government to deal with the shortage of these minerals.

 

The government is also actively engaging with startups working on recycling waste to extract rare earths such as loam and aldo. 

 

Speaking at the annual conference and 105th annual general meeting of the Associated Chambers of Commerce and Industry (Assocham), he said discussions are also underway with startups to establish rare earth processing facilities in India.

 

China is a major player of rare earths and has imposed restrictions on its exports, disrupting the supply chains worldwide.

 

“We have seen weaponisation of trade and supply chains. Make your supply chains robust, wherever possible, be self-sufficient and self-reliant. Make sure we have a sufficient number of options so that we are not vulnerable,” he said.

 

The recent global disruptions have highlighted the need for countries and industries to build secure, diversified, and self-reliant supply networks.

 

India must carefully evaluate every link in its supply chain — from raw material sourcing to production and distribution — to reduce dependence on a few geographies and avoid potential vulnerabilities, the minister said. 

 

Critical or rare earth minerals, such as copper, lithium, nickel, and cobalt, are essential raw materials which have applications in various industries ranging from electronic goods to fighter jets. These minerals also fuel growth of rapidly rising clean energy technologies, including electric vehicles and battery manufacturing.

 

Countries like Chile, Peru and Australia have reserves of these minerals. India already has implemented a trade pact with Australia and is negotiating with Chile and Peru.

 

Further, the minister said that the government is working on the guidelines for the ₹10,000-crore fund of funds scheme (FFS) for startups announced in the Budget this year.

 

It is focusing on manufacturing and high-technology sectors, which require longer-term funding.

 

Goyal also said that India recognises services as its core strength and expressed confidence that in another two years, the country’s services exports may exceed merchandise exports.

 

He said that India holds a clear advantage in the services sector, which generates employment and drives economic activity. It also provides a strong impetus to manufacturing, real estate, and the overall demand for goods and services, he added.

 

With inputs from PTI