China imposed rare meaning on minerals, it will increase the difficulty of these 5 sectors of India!
According to a recent report by Economists from the State Bank of India (SBI), the ban imposed on the export of ‘rare economies’ minerals by China will directly affect India’s domestic production capacity and export activities. According to PTI news, the report warns that this effect will be seen especially in five major areas- transport equipment, machinery, construction and electrical and electronics. In the coming days, this Bane can create challenges in front of India.
China is a major supplier for India
According to the news, the latest report said that in FY 2024-25, India imported a price of 31.9 million $ 31.9 million of ‘Rare Earth’ and its related products, while the import of rare meaning magnets reached $ 291 million. It has also been said that the consumption of these materials in India is continuously increasing. China is a major supplier of these minerals and compounds for India. Due to this high dependence, India’s industrial sector, especially manufacturing and export, may come at risk.
It is necessary to promote the discovery of minerals at the domestic level
The report also indicated that financial institutions, especially the banking sector, may be indirectly affected due to this ban. The SBI report has suggested to the government that India should promote domestical search and exploitation of minerals to reduce this import-dependence. In this context, the report mentions the ₹ 8,000 crore scheme of the Government of Odisha, under which minerals are being discovered in Ganjam district.
Why is rare meaning mineral so important
According to the American GeoSines Institute, Rare Earth Elements (REE) is a group of 17 metallic elements. These include 15 lanthnide, scandium and yitrium of the periodic table.
Rare Earth Elements are essential components of over 200 products, especially high -tech consumer products, such as cellular telephone, computer hard drives, electric and hybrid vehicles, and flat screen monitor and television etc. It is also very important for special defense applications including electronic display, guidance systems, laser, radar and sonar systems.
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