India Cuts Taxes to Boost Rare Earth Processing to Counter China

India is looking to remove taxes on import of equipment for processing critical minerals and spur manufacturing of rare earth magnets locally, a move aimed at minimizing dependence on China.

The federal government will also support mineral-rich states including Odisha, Kerala, Andhra Pradesh and Tamil Nadu in setting up dedicated rare earth corridors to promote mining, processing, research and manufacturing, Finance Minister Nirmala Sitharaman said during her budget speech on Sunday.

“Today, we face an external environment in which trade and multilateralism are imperiled and access to resources and supply chains are disrupted,” Sitharaman said, adding that new technologies are ...