China's ban on rare earth trade will impact domestic production and exports across five sectors in India, economists at SBI said on Monday.
A report by the economists pegged the overall imports of rare earths and compounds at USD 31.9 million and magnet imports at USD 291 million in FY25.
Volumes of India's consumption of rare earths and compounds has seen a rising trend, it said, adding that import of rare earth magnets by India increased sharply in FY25.
"China dominates in India's direction of trade in rare earth minerals and compounds," it said, listing out priorities India needs to adopt.
"The top sectors impacted by China's ban include transport equipment, basic metals, machinery, construction and electrical and electronics. Both domestic production and exports will be impacted," it added.
It added that Indian financial institutions, including banks, are also at risk of some impact because of this.
The SBI report recommended states to take additional steps to ensure better exploration of such resources, which can reduce dependency on imports.
It also cited a ₹8,000-crore scheme by the government of Odisha as a case in point, and specified about efforts to search for minerals in the Ganjam district.
