Archive · 4 Jul 2025
China's Mineral Curbs: A Wake-Up Call for India's Reliance
China is limiting the export of important minerals that India needs for electronics and other industries.
This is like a store that only sells certain toys deciding not to sell them anymore.
India is being warned to find other ways to get these minerals and not rely so much on China.
One suggestion is for India to take apart products they buy from China, understand how they are made, and then create their own versions.
India is also encouraged to create more of these products at home.
The goal is to reduce India's dependence on China and to strengthen its economy.
China's export restrictions on critical minerals are impacting India's electronics sector.
GTRI urges India to reduce reliance on China via reverse-engineering and domestic production.
China has restricted exports of minerals like gallium, germanium, and graphite since mid-2023.
Chinese firms supply over 80% of India's needs in several sectors, deepening vulnerabilities.
India's trade deficit with China has widened significantly, reaching $100 billion in FY25.
- Who
- China is restricting exports; India is affected.
- What
- China's export restrictions on critical minerals are impacting India's electronics sector and trade.
- When
- Restrictions began mid-2023, with further actions in late 2024 and June 2025.
- Where
- The issue affects India and China.
- Why
- To hinder India's industrial growth and control supply chains.
India's Perspective
China's Perspective
Trade Dependence
India's Perspective
Need to reduce reliance on China.
China's Perspective
China's restrictions are a calculated move to hinder India.
- Think Tank
- GTRI
- Minerals Restricted
- Gallium, germanium, graphite
- Impacted Sectors
- Electronics, EV, defense, clean energy, battery manufacturing
- Trade Deficit
- $100 billion (FY25)
- Import Dependence
- Over 80% in laptops, solar panels, and other items