China’s Rare Earth Grip: Supply shock may hit Indian industry, exports and bank books

India’s core industrial sectors, including transport, electronics, and machinery, are significantly dependent on rare earth imports, primarily from China. A recent SBI analysis warns that Chinese export curbs could disrupt domestic production, affect exports, and impact banks exposed to these sectors. Magnet imports—closely tied to rare earths—have surged, highlighting concentrated usage in automotive and electrical industries.