Commerce and Industry Minister Piyush Goyal has said that China’s decision to limit exports of rare earth materials and permanent magnets is likely to cause short-term disruptions, particularly in India’s automobile and white goods sectors.

He noted that the government, along with industry stakeholders, is actively seeking alternatives and engaging in diplomatic discussions to mitigate the issue.

Goyal, currently visiting Switzerland, is holding meetings with government officials and business leaders to explore trade prospects following the recently signed Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA).

Speaking to the media, he acknowledged the concern over halted supplies of permanent magnets from China, which are crucial for sectors like automotive and home appliances. He expressed hope that approvals for pending applications would be granted soon to ease the situation.

The Indian embassy in China, along with the Commerce Ministry, is in regular dialogue with Chinese counterparts to address the matter.