India’s recent experience with rare earth magnets and barytes marks the critical importance of managing strategic minerals. China’s export restrictions on rare earth magnets since April 2025 exposed global vulnerabilities. China controls over 90 per cent of these magnets, essential for electronics, defence, and electric vehicles. This control gave China strong leverage in trade negotiations, including recent talks in Kuala Lumpur. For India, this is a clear warning to reduce dependence on Chinese imports and secure critical mineral supplies domestically.
China’s Rare Earth Magnet Dominance
China dominates the global supply of rare earth magnets. These magnets are vital for advanced technologies and defence systems. By restricting exports, China gained economic and strategic advantages. This move disrupted global supply chains and brought into light the risks of over-reliance on one country for critical minerals.
India’s Barytes Reserves and Usage
Barytes (barium sulphate) is another critical mineral for India. It is essential for oil and gas drilling, stabilising pressure in deep wells to prevent blowouts. Defence applications include high-density components for missiles and specialised equipment. India has enough barytes reserves to meet domestic needs for 60-70 years if exports are controlled. No affordable alternative matches barytes’ unique properties.
Export Policies and Reserve Depletion
India’s export-oriented mining policy risks rapid depletion of barytes reserves. The Mangampet deposit in Andhra Pradesh produces over 95 per cent of India’s barytes. Reserves dropped from 49 million tonnes in 2015 to under 23 million tonnes in 2024. Annual depletion is 2-3 million tonnes. Export volumes surged after China restricted its barytes exports in 2015. India became the world’s largest barytes exporter since 2018, despite limited reserves.
Global Export Restrictions and Strategic Risks
Major oil producers like Russia, Iran, and the US have imposed export restrictions on barytes to protect their domestic supplies. The US prefers importing barytes over using its own reserves. This global trend signals rising recognition of barytes’ strategic importance. India faces risks of reserve exhaustion and may need imports. However, reliable suppliers like Mexico, Pakistan, and China are uncertain for India’s long-term needs.
Need for Strategic Stockpiles and Policy Reforms
India must reconsider its export policies to preserve barytes for domestic use. Establishing a strategic stockpile of high-quality barytes is crucial. This will ensure resource sustainability and secure energy and defence sectors. Without such measures, India risks losing control over a vital mineral essential for national security and energy independence.
Questions for UPSC:
- Point out the strategic significance of critical minerals like rare earths and barytes in India’s energy and defence sectors.
- Critically analyse India’s current mineral export policies and their impact on long-term resource sustainability with suitable examples.
- Estimate the challenges India faces in reducing import dependence on critical minerals, and suggest measures to enhance domestic resource security.
- Underline the role of global supply chains and geopolitical factors in shaping India’s mineral resource management and trade policies.
Answer Hints:
1. Point out the strategic significance of critical minerals like rare earths and barytes in India’s energy and defence sectors.
- Rare earth magnets are vital for advanced electronics, defence systems, and electric vehicles.
- Barytes (barium sulphate) is essential for oil and gas drilling, stabilising pressure to prevent blowouts.
- In defence, barytes are used in high-density components for missiles and specialised equipment.
- No affordable substitutes match barytes’ unique properties for these critical applications.
- Control over these minerals ensures energy security and strengthens national defence capabilities.
- Strategic minerals are critical for technological advancement and reducing foreign dependency.
2. Critically analyse India’s current mineral export policies and their impact on long-term resource sustainability with suitable examples.
- India’s export-oriented mining policy has led to rapid depletion of barytes reserves, risking future shortages.
- Mangampet deposit reserves dropped from 49 million tonnes (2015) to under 23 million tonnes (2024) due to high exports.
- India became the world’s largest barytes exporter post-2018 despite limited domestic reserves (~4% global deposits).
- Export surge driven by China’s export restrictions on barytes and rare earths, filling global supply gaps.
- Unregulated exports threaten long-term availability for domestic energy and defence needs.
- Need for policy reforms to balance export revenues with strategic stockpiling and sustainability.
3. Estimate the challenges India faces in reducing import dependence on critical minerals, and suggest measures to enhance domestic resource security.
- High import dependence on China for rare earths and other critical minerals exposes India to supply disruptions.
- Lack of affordable alternatives to minerals like barytes complicates substitution efforts.
- Limited domestic exploration and inefficient resource management hinder self-reliance.
- Geopolitical uncertainties reduce reliability of other global suppliers (Mexico, Pakistan, China).
- Measures – strengthen domestic mining, impose export restrictions, develop strategic stockpiles.
- Promote R&D for substitutes and recycling to reduce raw material demand.
4. Underline the role of global supply chains and geopolitical factors in shaping India’s mineral resource management and trade policies.
- China’s dominance (90%+ in rare earth magnets) gives it economic and strategic leverage globally.
- Export restrictions by major producers (China, Russia, Iran, US) reflect rising strategic importance of minerals.
- Global supply disruptions show risks of over-reliance on single countries for critical minerals.
- Geopolitical tensions influence trade negotiations and mineral availability (e.g., Kuala Lumpur talks).
- India’s policies must adapt to secure stable supply chains and reduce vulnerability to external pressures.
- Strategic stockpiling and diversified sourcing are key to mitigating geopolitical risks.
