Government Aids Auto Industry in Getting Chinese Magnets

Easing the Procurement Process

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The Indian government is stepping in to help the auto and component industry. They aim to simplify the process of getting rare earth magnets from China. Companies are sending special certificates to China. These certificates assure that the magnets won’t be used for defense or weapons.

Government’s Role

The commerce department and the ministry of external affairs are leading this effort. They plan to arrange a meeting between Indian industry leaders and Chinese officials. A senior official stated, “We understand the industry’s concerns. If supplies don’t resume soon, manufacturing schedules could be affected.”

Sunil Barthwal, the commerce secretary, recently met with auto sector leaders. Soon, a group of industry executives will visit China. The Indian embassy in Beijing will assist with this trip.

Government as a Helper

The government wants to act as a helper. They don’t want this to be seen as a direct government-to-government talk. The goal is to bring together the right people and ministries. This will help speed up the approval process. The industry has already sent the needed documents.

Challenges and Solutions

The local industry is trying to build its own capabilities. But this is a big challenge. Alok Perti, a former coal secretary and now a senior advisor, pointed out:

• Building local supplies is important but complex.
• It requires large investments.
• Handling radioactive materials during extraction is crucial.

Perti also suggested:

• The government should provide funding like the PLI schemes.
• Encourage research with countries like Russia and Australia.

Industry’s Actions

Industry groups like the Society of Indian Automobile Manufacturers (Siam) and the Automotive Components Manufacturers Association (ACMA) are talking directly with the government. Companies have also sent their requests through the process set by the Chinese government.

The applications have reached China. Companies are waiting for a response. Industry leaders are hopeful for a positive result. This follows meetings that Chinese vice foreign minister Sun Weidong had with his Indian counterparts during his two-day visit to India.