According to a report from The Financial Express, China has promised to ease export restrictions on rare earth elements, fertilizers, and tunnel-boring machines for India. This commitment was made during a high-level meeting between External Affairs Minister Jaishankar and Chinese Foreign Minister Wang Yi. India has an overwhelming dependence on China for its global pharmaceutical ingredients (APIs), but China’s easing of restrictions on rare earth elements is a significant diplomatic and strategic gesture.
The article notes that a lack of access to rare earth elements has hurt Indian manufacturing, particularly in the production of magnets for electric vehicles (EVs), wind turbines, and electronic goods. India has also been struggling to import key raw materials from Russia and Ukraine due to the ongoing conflict. The new commitment from China is expected to boost India’s manufacturing of EVs and semiconductors.