Auto industry has resilience to tackle rare earth issue

With nearly 40 end-user import certificates awaiting Chinese approval, India has been grappling with Beijing's restrictions on rare earth or permanent magnet exports since April 4. Though inventories are estimated to taper off by mid-July for certain automotive applications, HD Kumaraswamy, Union minister of heavy industries and steel (MHI), in an interview with Puja Das in New Delhi, says the Centre is actively working with industry associations to resolve the issue at the earliest. Edited excerpts:

- 

Indian importers are complaining about China not approving imports of rare earth magnets despite clearance of nearly 40 certificates by India. How is India taking up the issue with China? The Indian government is seized of the matter and is actively working with industry associations to resolve it at the earliest. The auto industry has resilience to tackle this challenge.

The US doubling tariff on steel and aluminium may disrupt India's metal exports. Is there any effect on our exporters that India may be negotiating with the US at the bilateral trade agreement (BTA) talks?

■India exported about 165,000 tonnes of finished steel to the US in FY25, about 0.1 per cent of our total production. Direct impact on the Indian steel sector is expected to be minimal. However, the Indian government is mindful of potential indirect effects, as steel-exporting nations may divert excess supply to other markets, increasing competition and pressuring global prices. The situation is being closely monitored, and the government continues to engage with the US across various forums. This will ensure a fair and stable trading environment that safeguards the interests of Indian steel producers.