India ranks among the world’s top three countries in rare earth reserves, yet its production remains well below one percent of global output, exposing a significant gap between resource availability and actual extraction, according to a report by Amicus Growth.
Reserve Strength Places India Behind Only China and Brazil
Data from the report show that India holds approximately 6.9 million tons of rare earth oxide (REO) reserves, placing it behind China, which leads with 44 million tons, and Brazil, with 21 million tons. Other countries with substantial reserves include Australia (5.7 million tons), Russia (3.8 million tons), Vietnam (3.5 million tons) and the United States (1.9 million tons). Overall, India accounts for nearly 6–7 per cent of global rare earth reserves.
Production Remains Limited Despite Resource Advantage
However, India’s production performance tells a different story. In 2024, the country produced just 2,900 tonnes of rare earths, ranking seventh globally. In contrast, China produced about 270,000 tonnes, cementing its position as the undisputed global leader.
The United States followed with 45,000 tons, while Myanmar (31,000 tons), Australia, Thailand and Nigeria (around 13,000 tons each) also outpaced India. As a result, despite its large reserve base, India contributes less than one percent of global rare earth production.
Geological and Regulatory Constraints Complicate Mining
A key challenge lies in the nature of India’s deposits. Most reserves occur in monazite-rich coastal sands, which also contain thorium, a radioactive element. Consequently, mining and processing activities face heightened regulatory scrutiny and complex safety requirements. According to the report, regulatory hurdles have historically slowed rare earth development in India. For decades, production remained largely restricted and was primarily handled by Indian Rare Earths Limited (IREL), where rare earth elements were treated mainly as by-products rather than strategic materials.
Processing and Refining: The Critical Bottleneck
Beyond mining, the report identifies processing and refining capacity as India’s biggest weakness. While many countries possess rare earth reserves, refining capacity remains highly concentrated. China currently controls around 90 per cent of global rare earth refining capacity and dominates the processing of heavy rare earth elements, giving it a decisive advantage across the entire value chain.
India’s Limited Role in Global Rare Earth Trade
In comparison, India has minimal processing and refining infrastructure. The report noted that annual production has remained only a few thousand tonnes, leaving India with virtually no presence in global rare earth trade. Although a Japan-linked joint venture in Visakhapatnam has signalled India’s re-entry into the sector, the scale of operations remains modest and insufficient to shift global dynamics.
Global Context Reinforces China’s Dominance
Globally, rare earth reserves are estimated at 90–110 million tonnes of REO. China alone holds nearly half of these reserves, reinforcing its leadership in both supply and production. As reported by republicworld.com, the report concludes that India’s challenge is not resource scarcity, but gaps in execution, processing capacity, and value-chain integration. Unless these structural issues are addressed, India’s substantial reserves are unlikely to translate into strategic influence or market leadership in the global rare earth sector.
