UPSC Daily Current Affairs: 14th September 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly PDF Download

GS3/Economy

India’s Outward FDI Trends - Shift Towards Tax Havens

Why in News?

Nearly 60% of India’s outward FDI is now routed through tax havens like Singapore, Mauritius, and the UAE, reflecting both tax advantages and strategic global expansion needs.

Key Takeaways

• Significant growth in India's outward FDI over the past two decades.
• Preference for low-tax jurisdictions among Indian companies.
• Government support through regulatory reforms and treaties.

Additional Details

• Outward FDI Growth: India’s outward foreign direct investment (FDI) has seen remarkable growth, driven by the ambition of Indian firms to enhance their global footprint.
• Tax Havens Usage: In 2023-24, 56% of outward FDI (approximately Rs. 1,946 crore of a total Rs. 3,488 crore) flowed into low-tax jurisdictions, underscoring the role of Singapore, Mauritius, and the UAE.
• Strategic Expansion: Indian companies are establishing subsidiaries abroad to access new markets, acquire technology, form strategic partnerships, and diversify risks.
• The government has facilitated this trend by easing regulations and enhancing bilateral investment treaties.
• Concerns remain regarding tax revenue leakage and regulatory arbitrage, even as these jurisdictions provide strategic advantages.

In conclusion, India's outward FDI trajectory reveals a complex interplay between tax efficiencies and the necessity for global expansion. As nearly 60% of investments are funneled through tax havens, these regions serve both as gateways for international growth and protective buffers against global trade uncertainties. The ongoing challenge for India will be to maintain an effective regulatory framework while fostering its companies' aspirations for global presence.

GS2/Polity

Enhanced Powers of Foreigners Tribunals

Why in News?

The Union Home Ministry has recently enacted the Rules, Order, and Exemption Order under the Immigration and Foreigners Act, 2025. This comprehensive legislation supersedes various older laws such as the Passport (Entry into India) Act, 1920, the Registration of Foreigners Act, 1939, the Foreigners Act, 1946, and the Immigration (Carriers’ Liability) Act, 2000, streamlining the governance of foreign individuals and immigration processes.

Key Takeaways

• The new Act aims to eliminate confusion caused by multiple pre-Independence laws related to immigration and travel.
• It formalizes the Bureau of Immigration's (BOI) authority to investigate immigration fraud and maintain a comprehensive immigration database.
• Foreigners Tribunals (FTs) are now granted judicial powers akin to first-class magistrates.

Additional Details

• Investigation Powers: The Bureau of Immigration is empowered to investigate immigration fraud and collaborate with state authorities to identify and deport foreigners.
• Biometric Recording: Biometric data collection is now mandated for all foreigners, expanding beyond previous limitations.
• Reporting Requirements: Educational institutions are required to report foreign students' attendance and conduct to the Foreigners Regional Registration Office (FRRO).
• Premises Closure: Establishments frequented by illegal migrants can be shut down, adding to existing measures against undesirable foreigners.
• Judicial Powers of FTs: Foreigners Tribunals can now issue arrest warrants and send individuals without citizenship proof to detention centers, with their decisions being reviewable within 30 days.
• Expanded Entry Refusal Grounds: Entry can be denied based on criteria such as anti-national activities, terrorism, and human trafficking.
• Exemptions: Certain groups, including registered Sri Lankan Tamil nationals and undocumented minorities from neighboring countries, are exempt from the passport and visa requirements under specific conditions.

This new framework is intended to modernize India's immigration policies, addressing contemporary challenges while ensuring better regulation and enforcement regarding foreign nationals in the country.

GS2/Governance

Development Push in Manipur - PM Modi Inaugurates Projects Worth ₹1,200 Crore

Why in News?

Prime Minister Narendra Modi inaugurated and laid the foundation stone for numerous development projects amounting to over ₹1,200 crore in Imphal, Manipur. These initiatives encompass a range of areas including infrastructure, digital connectivity, women empowerment, sports, governance, and disaster resilience, highlighting the government's commitment to fostering inclusive growth in the North-East region. This visit marks PM Modi's first to Imphal since the ethnic violence that erupted in May 2023, during which he called for unity between the Meitei-dominated valley and the Kuki-dominated hill districts, advocating for harmony, peace, and development.

Key Takeaways

• Inauguration of major infrastructure projects in Manipur.
• Focus on women empowerment through new initiatives.
• Emphasis on sports development and cultural identity.
• Government's commitment to peace and stability in the region.

Additional Details

• Infrastructure Development: The launch of the Manipur Urban Roads Project (₹3,600 crore) aims to enhance connectivity in Imphal. Other projects include the construction of national highways and rural roads to connect villages.
• Digital and IT Growth: The Manipur Infotech Development Project (₹500 crore) and the establishment of an IT Special Economic Zone are intended to promote startups and tech industries in the region.
• Women Empowerment: The inauguration of four new Ima Markets reinforces the Ima Keithel tradition, symbolizing a women-led economy, aligned with the Atmanirbhar Bharat vision.
• Sports Development: The establishment of a National Sports University in Manipur and initiatives such as the Khelo India Olympic Podium schemes aim to support local athletes and promote sports.
• Socio-Economic Relief: The government’s initiatives include the approval of 7,000 new houses for displaced families and a special package of approximately ₹3,000 crore for Manipur.

In summary, PM Modi’s initiatives in Manipur not only aim to boost infrastructure and economic growth but also emphasize the importance of peace, stability, and inclusivity as fundamental aspects for progress in the region. The focus on women empowerment and sports development further positions Manipur as a hub of culture and growth in the North-East.

GS2/International Relations

Missed Demographic Dividend in South Asia and Beyond

Why in News?

In recent years, youth-led uprisings have emerged in countries such as Sri Lanka, Bangladesh, Indonesia, and Nepal, driven by economic growth that has not translated into improved opportunities for the younger population. Instead, a backdrop of corruption and prosperity among elites has fueled discontent.

Key Takeaways

• Youth protests in South Asia reflect frustrations over inequality and lack of opportunities.
• Corruption rankings indicate severe governance issues in Nepal, Bangladesh, Sri Lanka, and Indonesia.
• High unemployment rates among young people signal a failure to capitalize on the demographic dividend.

Additional Details

• Youth Unrest: In Nepal, protests have highlighted the extravagant lifestyles of political elites, referred to as "nepo kids," exacerbating generational anger.
• Corruption Statistics: According to Transparency International’s 2024 rankings, Nepal ranks 107, Bangladesh 151, Sri Lanka 121, and Indonesia 99, illustrating widespread governance challenges.
• Economic Growth Without Inclusion: Despite economic growth, the youth remain disproportionately affected by unemployment and underemployment, as traditional sectors decline due to automation.
• High Youth Unemployment: In 2024, Indonesia's unemployment rate was 4.91%, but for ages 20-24, it spiked to 15.34%. In Bangladesh, the unemployment rate for youth aged 15-24 was 8.24% in 2023.
• Nepal's Employment Crisis: Unemployment rose from 11.4% in 2017-18 to 12.6% in 2022-23, with many young Nepalis seeking work abroad, contributing to remittances that comprise nearly a quarter of GDP.
• India's Demographic Transition: India is experiencing a shift towards a demographic dividend, with a median age of 28 and a projected peak demographic dividend around 2041, when the working-age population is expected to reach 59%.

The situation across South Asia underscores a critical need for inclusive job creation and economic policies that can harness the potential of the young demographic, turning discontent into a driving force for growth and stability.

GS2/Polity and Governance

Promotion and Regulation of Online Gaming Act, 2025

 Why in News? 

 The Promotion and Regulation of Online Gaming Act, 2025, recently passed by Parliament, aims to create a comprehensive legal framework for the online gaming sector in India. The Act encourages e-sports and online social games while imposing a ban on online money gaming services, advertisements, and financial transactions related to such activities. 

 The Act was introduced in Parliament as a Finance Bill under Articles 117(1) and 117(3) of the Constitution, with the President's recommendation. It seeks to foster a responsible digital environment for citizens while regulating and promoting the online gaming industry. 

 One of the key features of the Act is the complete prohibition of online money games, which includes offering, advertising, or facilitating financial transactions for real money games. Banks and financial institutions are barred from processing payments for such platforms, and authorities empowered under the IT Act, 2000, are given the power to block unlawful platforms. 

 Key Provisions of the Act 

 1. Classification of Online Games 

 Online games are classified into three categories: 

• E-Sports: Recognized as a legitimate sport, e-sports involve competitive digital sports played through organized tournaments, requiring skill. 
• Online Social Games: These are primarily skill-based games designed for entertainment or social interaction, such as Wordle. 
• Online Money Games: These games involve financial stakes, whether based on chance, skill, or both. Players pay fees or deposit money with the expectation of monetary or other gains, such as Dream11, Poker, and Rummy. 

 2. Applicability of the Act 

 The Act applies across India and includes online money gaming services offered within the country or operated from outside but accessible in India. 

 3. Promotion of Positive Gaming 

 The Act also promotes positive gaming initiatives, such as: 

• E-Sports: The Ministry of Youth Affairs and Sports is tasked with framing guidelines, establishing training academies, and research centers for e-sports. 
• Social/Educational Games: The Union Government can recognize, register, and promote safe, age-appropriate platforms for learning and recreation. 

 4. Regulatory Body 

 The Act provides for the establishment of a national-level regulatory body to: 

•  Categorize and register games. 
•  Determine if a game qualifies as a money game. 
•  Handle complaints and grievances. 

 5. Offences and Penalties 

 The Act outlines severe penalties for various offences, including: 

•  Offering online money games, which can lead to up to 3 years of imprisonment and a fine of ₹1 crore. 
•  Advertising banned games, which can result in up to 2 years of imprisonment and a fine of ₹50 lakh. 

 Offences are classified as cognizable and non-bailable. 

 6. Liability Clause 

 The Act holds companies and their officers accountable for violations. Independent and non-executive directors are exempt from liability if they can demonstrate due diligence. 

 Online Gambling 

 Online games are defined as those played on electronic or digital devices and operated through software using the internet or other electronic communication technologies. It facilitates real-time interaction and competition between players, regardless of their location. 

Classification:

• Skill-Based Games: They prioritize skill over chance and are legal in India. E.g., Game 24X7, Dream11, and Mobile Premier League (MPL). 
• Games of Chance: Their outcome depends mainly on luck rather than skill and are Illegal in India. E.g., Roulette, which attracts players primarily for monetary rewards. 

Market Size:

•  In 2023, India became the world's largest gaming market with 568 million gamers and 9.5 billion app downloads. 
•  The market, valued at USD 2.2 billion in 2023, is projected to reach USD 8.6 billion by 2028. 

 What are the Key Growth Drivers of India’s Gaming Industry? 

 1. Economic Drivers 

•  India’s vibrant start-up ecosystem, supported by initiatives like Start-up India and Atmanirbhar Bharat, has spurred the growth of numerous gaming companies and platforms. 
•  These start-ups are driving innovation and catering to the diverse gaming preferences of Indian consumers, contributing to the industry’s expansion. 
•  Notable gaming unicorns include Games24X7, Dream11, and Mobile Premier League. 
•  In recent years, gaming companies have raised USD 2.8 billion from domestic and global investors, accounting for 3% of total startup funding in India. 
•  NVIDIA has announced the launch of its cloud gaming service in India in November 2025. 

 2. Technological Enablers 

•  Initiatives like BharatNet and the National Broadband Mission aim to provide high-speed internet to rural and remote areas, enhancing accessibility for gamers. 
•  The rollout of 5G has further improved internet speeds and reduced latency, crucial for a seamless gaming experience. 
•  A recent survey by MoSPI indicates that over 85% of Indian households own smartphones, with 86.3% having internet access within their premises. 
•  Mobile phones constitute 90% of the gaming market in India, compared to about 37% in the US and 62% in China. 

 3. Policy & Cultural Shifts 

•  The IT Rules 2021, self-regulatory bodies, and the AVGC Task Force have established a framework for the safe growth of the gaming industry. 
•  Gamers are honored in the Content Creators Award, and the Create in India Campaign promotes content creators. 
•  The Covid-19 lockdown accelerated industry growth by 50%, with average gaming time increasing from 2.5 to 4.1 hours per day, making gaming a legitimate career path. 

 How is the Gaming Industry Regulated in India? 

 1. Information Technology Act, 2000 & Rules 

•  The IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, amended in April 2023, set standards for online gaming platforms. 
•  Intermediaries must prevent the circulation of unlawful/illegal content. 
•  Platforms offering money games must register with Self-Regulatory Bodies (SRBs), which determine if a game is permissible. 
•  Section 69A empowers the government to block illegal sites/apps — 1,524 betting and gambling platforms blocked (2022–June 2025). 

 2. Bharatiya Nyaya Sanhita, 2023 

•  Section 111: Penalises unlawful economic activities and cybercrimes. 
•  Section 112: Punishes unauthorised betting/gambling with 1–7 years imprisonment and fines. 

 3. Integrated Goods and Services Tax (IGST) Act, 2017 

•  Extends to illegal/offshore gaming platforms. 
•  Online money gaming suppliers must register under the Simplified Registration Scheme. 
•  The DG of GST Intelligence can direct blocking of unregistered/non-compliant platforms. 
•  Ensures digital gaming entities follow the same taxation norms as physical businesses. 

 4. Consumer Protection Act, 2019 

•  Prohibits misleading/surrogate advertisements. 
•  The CCPA can investigate, penalise, and initiate criminal proceedings. 
•  Advisories issued to restrict celebrities/influencers from endorsing betting platforms. 

GS3/Indian Economy

Exemptions for Mineral Exploration in Forests

Why in News?

The Forest Advisory Committee (FAC) has approved enhanced exemptions for mineral exploration drilling in forest areas, following requests from the Ministries of Coal and Mines. 

•  These exemptions for exploratory drilling were introduced through the 2023 amendment to the Forest Conservation Act, 1980. 

Why Have Exemptions Been Provided for Mineral Exploration Drilling in Forest Regions?

Borehole Limit and Push for Critical Minerals:

• The Environment Ministry now permits 62 to 80 boreholes per 10 sq km, each up to 6 inches in diameter, for mineral exploration.
• Earlier rules allowed only 25 boreholes per 10 sq km, along with 80 shot holes and felling of up to 100 trees, without requiring forest clearance.
• This expansion aims to tap critical minerals like lithium, cobalt, and nickel, vital for clean energy and defence.

Ease of Doing Business:

• Reduces delays from repeated central clearances for temporary exploration.

Private Sector Participation:

• Encourages greater investment and involvement in mineral exploration.

Economic Growth Support:

• Minerals are crucial for infrastructure, manufacturing, defence, and green technologies.
• Enables quicker project development, cost efficiency, and higher investment inflows.

What Concerns are Associated with Increased Mineral Exploration Drilling in Forest Regions?

Environmental and Ecological Concerns:

• Increased drilling activities may cause cumulative environmental impact.
• Potential effects on forest flora and fauna despite safeguards.
• Local and regional precipitation patterns may be impacted by forest loss.

Local Communities and Tribal Rights:

• Potential conflicts with traditional forest dwellers' rights under FRA 2006.
• Safeguarding of religiously and culturally significant forest areas.
• Effects on forest-dependent communities and their traditional occupations.

Bypass Forest (Conservation) Act, 1980 Scrutiny:

• The FCA mandated central government certification for any activity on forest land that wasn't directly connected to conservation of forests.
• Issues with mineral exploration being reclassified as a "forest activity."

Critical minerals

Critical minerals are those essential for a nation’s economic growth and national security, whose limited availability or concentration of reserves/extraction in specific regions creates supply chain vulnerabilities.

India’s Position: Released a list of 30 critical minerals (e.g., Bismuth, Cobalt, Copper, Rare Earth Elements, Silicon, Tin, Titanium). India is heavily import-dependent for most critical minerals.

Significance of Critical Minerals:

• Environment & Energy: Key for renewable energy technologies (solar panels, wind turbines, semiconductors). Essential in Battery Energy Storage Systems (BESS).
• National Security: Vital for defence sector – missile systems, aerospace, communication technologies.
• Economic & Electronics: Critical for electric vehicles (EVs) via lithium-ion batteries. Required for semiconductors, smartphones, computers, communication devices.

India’s Initiatives for Critical Minerals:

• Policy and Regulatory Framework: National Critical Minerals Mission (NCMM), aims to identify 1,200 deposits by 2030 to meet rising demand for lithium, cobalt, and other critical minerals, vital for clean energy and EVs.
• Mines and Minerals (Development and Regulation) Amendment Act, 2023: Enables exploration and mining of critical minerals.
• National Mineral Policy, 2019: Focuses on sustainable mining and exploration.
• Union Budget 2024-25: Removed customs duties on most critical minerals.

Exploration and Domestic Production:

• Geological Survey of India (GSI): Conducting extensive surveys for lithium, rare earths, and other critical minerals.
• Lithium Discovery (2023): Major reserves identified in Reasi, Jammu & Kashmir.
• Strategic Mineral Reserves: Plans to build reserves for lithium, cobalt, and others.

International Collaborations & Trade Agreements:

• Khanij Bidesh India Ltd (KABIL), 2019: Joint venture under the Ministry of Mines to secure overseas mineral assets; partnerships with Argentina, Australia, etc.
• Minerals Security Partnership (MSP): India joined the US-led initiative in 2023 to strengthen global supply chains for critical minerals.

Sustainable Roadmap for Mineral Exploration in Forests

Sustainable Exploration Practices:

• Promote non-intrusive technologies such as geophysical surveys, images from satellites, remote sensing and artificial intelligence based mineral forecasting systems and drone-based mapping techniques.
• Mitigate impact on the environment through decreasing usage on powered drilling.

Strengthen Environmental Safeguards:

• Establish strict Standard Operating Procedures (SoPs) like No drilling in wetlands ecosystems, areas for reproduction, or critical ecosystems.
• Implement time-specific limitations in place (No drill during the nesting or breeding periods).

Cluster Mining Approach:

• Utilize resources through cluster mining initiatives that include shared environmentally friendly structures for multiple divisions.
• Eco-friendly techniques such as conveying systems, bucket steering digging machines, and systematic landfill control.

GS2/ Environment and Ecology

Rethinking India’s Strategy Against Aedes Mosquitoes

Why in News?

 India is currently experiencing an increase in cases of dengue, chikungunya, and Zika, all of which are transmitted by Aedes mosquitoes. However, the authorities are still relying on fumigation methods that are not very effective in combating these diseases. Experts are calling for a shift towards personal protection, community involvement, and the implementation of innovative and cost-effective measures to tackle the problem more effectively. 

Why Current Measures Against Aedes Mosquitoes are Failing

• Mosquito Behaviour: Aedes mosquitoes have specific feeding habits that make them difficult to control with current methods. They primarily bite indoors during the daytime and at night under artificial light. This means that outdoor fogging, which is the current method of fumigation, misses a significant portion of their activity. 
• Ineffectiveness of Fumigation: Local authorities continue to conduct large-scale fumigation despite national health agencies not recommending it as a routine method. Fumigation provides little long-term impact and is not effective in reducing mosquito populations significantly. 
• Chemical Resistance: Aedes mosquitoes are developing tolerance to pyrethroid-based vaporizers and temephos larvicides. This chemical resistance is reducing the effectiveness of these commonly used methods for controlling mosquito populations. 
• High Cost of New Technologies: There are promising innovations such as Wolbachia mosquitoes and spatial repellents that could be effective in controlling Aedes populations. However, these technologies remain underused due to their high costs and lack of institutional support. 
• Incomplete Vaccine Protection: While there are ongoing trials for dengue vaccines such as DengiAll, there is currently no approved and effective vaccine for chikungunya or Zika in India. This lack of vaccine protection hampers efforts to control these diseases. 

Measures to Strengthen the Fight Against Aedes Mosquitoes

• Shift Focus from Fogging to Source Reduction: The government should prioritise larval source management by focusing on cleaning stagnant water in homes, rooftops, tyres, and construction sites. This is more effective than fogging, as Aedes mosquitoes rest indoors. For example, Delhi’s "10 Hafte, 10 Baje, 10 Minute" campaign encourages households to check water containers weekly to prevent mosquito breeding. 
• Strengthen Community Participation: Evidence from the Camino Verde trial in Latin America shows that community management of breeding sites can significantly reduce dengue cases. India can replicate such community mobilisation efforts at the ward or village level. Similar to polio campaigns, a “Dengue Free India Mission” can be initiated, combining school education, television, and digital outreach to raise awareness. Accredited Social Health Activists (ASHAs) can play a crucial role as frontline educators, raising household-level awareness about dengue prevention. 
• Ensure Affordable and Safe Repellents: The government should promote the widespread use of DEET (N,N-diethyl-meta-toluamide)-based repellents, which are proven to be the most effective. To enhance accessibility, these repellents can be subsidised or included under Jan Aushadhi Kendras. 
• Promote Personal Protection: Encourage individuals to use long sleeves, treated nets for daytime sleepers, and insecticide-treated school uniforms. Awareness campaigns should emphasise that Aedes mosquitoes bite during the daytime, differentiating them from malaria mosquitoes. 
• Support Innovative Interventions: Integrate the use of Wolbachia-infected mosquitoes, a method being scaled up in countries like Brazil, Indonesia, and Australia, to reduce dengue transmission. While supporting vaccine development, it is important to use them cautiously due to their limited efficacy. 
• Environmental and Waste Management: Aedes mosquitoes thrive in plastic waste and discarded containers, making strong solid waste management and plastic recycling initiatives essential. Smart cities and the Swachh Bharat Mission can incorporate anti-dengue waste management drives to address this issue. 

Burden of Aedes Mosquitoes

• Role as Disease Vectors: Aedes mosquitoes are responsible for transmitting several severe and rapidly spreading arboviruses, including Dengue, Zika, and Chikungunya. 
• Dengue in India: India has one of the highest burdens of dengue in the world, with approximately 33 million symptomatic and 100 million asymptomatic infections annually. Dengue is both endemic and emerging in various parts of the country. 
• Zika Virus: The first reported case of Zika in India was in Gujarat State in 2016. Since then, several other states, including Tamil Nadu, Madhya Pradesh, Rajasthan, Kerala, Maharashtra, Uttar Pradesh, Delhi, and Karnataka, have reported Zika cases. 
• Chikungunya: Chikungunya is endemic to India and causes severe joint pain, fever, and rash, with no specific treatment available. Major outbreaks have occurred in the past, with significant re-emergence in 2006, now affecting almost all states, particularly urban and peri-urban areas.

 GS3/Indian Economy

​India Explores Rare-Earth Deal with Myanmar

Introduction

Rare earth elements (REEs) are a set of 17 chemical elements crucial for various high-tech applications. Despite their name, these elements are not particularly rare in terms of their abundance in the Earth's crust. However, they are rarely found in economically viable concentrations, making their extraction and processing challenging.

The global supply of REEs is heavily dominated by China, which controls a significant portion of both the mining and processing capacities. This has raised concerns among other countries about the security and sustainability of their REE supplies, especially given the increasing demand for these materials in emerging technologies such as electric vehicles, renewable energy systems, and advanced electronics.

In response to these concerns, India is actively seeking to develop its own REE resources and processing capabilities. The Indian government has recognized the strategic importance of REEs and is taking steps to promote exploration, extraction, and processing of these materials within the country. By reducing dependence on foreign sources, particularly China, India aims to secure a stable supply of REEs for its growing industrial and technological needs.

Recent Developments

• India is partnering with the Kachin Independence Army (KIA) in Myanmar to obtain samples of rare-earth minerals. This collaboration aims to diversify India's supply chain for these critical minerals, reducing dependence on China.
• The KIA, a prominent armed group in Myanmar, has control over the Chipwe-Pangwa mining belt in Kachin state, which is a significant source of heavy rare earths like dysprosium and terbium.

What are Rare Earth Minerals?

Rare earths consist of 17 elements, comprising 15 metals known as lanthanides, along with scandium and yttrium. The periodic table lists them as follows: scandium, yttrium, lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium.

Although they are called "rare," these elements are not uncommon. They are typically found in small quantities, spread thinly across the Earth's crust, and often mixed with other minerals, making large, extractable deposits hard to find and costly to obtain.

Environmental Impact: Processing rare earths can harm the environment due to the use of solvents that generate toxic waste, contaminating soil, water, and air. While more eco-friendly technologies are being developed, they are not yet widely implemented. Additionally, some rare earth ores contain radioactive materials like thorium or uranium, which are usually removed using acid, posing further health and environmental risks.

Use: Rare earth minerals are essential in various products such as consumer electronics, electric vehicles, aircraft engines, medical devices, oil refining, and military applications including missiles and radar systems.

Biggest Producer: China is the leading producer of rare earth minerals, accounting for about 60% of global mine production and 90% of processed and permanent magnet output.

Status of India on Rare Earth Elements

India possesses the fifth-largest rare earth reserves globally, estimated at 6.9 million metric tons. However, the country lacks domestic production of rare earth magnets, relying instead on imports, primarily from China.

• In the fiscal year ending March 2025, India imported 53,748 metric tons of rare earth magnets, which are integral to various applications including automobiles, wind turbines, and medical devices.
• Rare earth mining in India is limited to IREL (Indian Rare Earths Limited), a miniratna company that supplies materials for nuclear power projects and defense-related applications to the Atomic Energy Department.
• IREL operates a rare earth extraction plant in Odisha and a refining unit in Kerala. The company is actively seeking to establish partnerships with Japanese and Korean firms to develop domestic manufacturing of rare earth magnets.
• To decrease dependency on imports, the Atomic Minerals Directorate for Exploration and Research (AMD) is exploring coastal, inland, and riverine placer sands to augment rare earth resources.
•  In 2025, India launched the National Critical Mineral Mission (NCMM) to enhance the exploration and production of critical minerals, including rare earths. The Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects under this mission from FY25 to FY31.