Author: Dr. Sadhana D. Singh

Abstract
The supply chains of rare earth elements (REEs) have become a critical component of the global political economy, given their strategic importance in advanced manufacturing, defense systems, and low-carbon energy technologies. Over the past few decades, China has maintained a dominant position in the REE sector through sustained state investment, vertically integrated processing capabilities, and deep integration into global value chains.
This dominance has been further reinforced in the context of recent geopolitical developments, including supply chain disruptions arising from conflicts such as the Russia Ukraine war, increasing strategic competition among major economies, and the global push toward resource security.
In the evolving international landscape, countries are actively seeking to diversify their dependence on concentrated suppliers of critical minerals. In this context, India’s position has gained renewed relevance, particularly with the growing emphasis on critical minerals in recent Union Budget announcements and policy initiatives aimed at strengthening domestic capabilities. Against the backdrop of ongoing tariff tensions and trade negotiations between
India and major economies such as the United States, REEs present a significant opportunity for enhancing economic resilience and strategic bargaining power.
This paper examines how India can strategically leverage its REE resources by drawing insights from China’s development model while adapting to contemporary geopolitical realities. Using a comparative political-economy framework supported by supply-chain analysis and policy evaluation, the study identifies key technological, institutional, and regulatory constraints limiting India’s global competitiveness. The paper proposes a
strategic roadmap for 2025 – 2035 in alignment with proposed plan in the Union budget announced on 1st February by India’s Finance minister Nirmala Sitaraman focusing on value addition, technological collaboration, and trade-aligned mineral diplomacy. It argues that with appropriate policy alignment and investment, India can position itself as a reliable and high-value participant in global REE supply chains.

Published in:  Journal of Global Information and Business Strategy (JGIBS), January-December 2025 (Volume-17, Number-1, 2025)

Keyword: Supply Chain | Rare Earth Elements | Critical Minerals | Geopolitical Economy | Political Economic Framework |Trade Policy

DOI: 

Download Paper