India Ranks Third in Rare Earth Reserves but Production Remains Low

India Ranks Third in Rare Earth Reserves but Production Remains Low

Daily Current Affairs   /   India Ranks Third in Rare Earth Reserves but Production Remains Low

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Category : Business and economics Published on: December 31 2025

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India holds the world’s third-largest rare earth mineral reserves, estimated at 6.9 million tonnes of rare earth oxides, accounting for 6–7% of global reserves. Despite this, India contributes less than 1% to global rare earth production, hindered by regulatory constraints, limited processing capacity, and weak value-chain integration. Most reserves are in monazite-rich coastal sands, which are technically complex to process. Strengthening domestic refining and strategic execution is crucial for India’s clean-tech, defense, and energy sectors.

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