India Poised to Gain from US-Proposed Rare Earth Trade Bloc Against China's Dominance

• The Trump administration proposes a critical minerals trade bloc to reduce global reliance on China for rare earth elements and strategic minerals.
• India, a key participant, is accelerating its domestic rare earth and semiconductor ambitions, aligning with the bloc's goals.
• The bloc aims to coordinate pricing mechanisms, trade rules, and supply chain investments, using adjustable tariffs to maintain pricing integrity and encourage private investment.
• Critical minerals are vital for semiconductors, EVs, and renewable energy; China's dominance has caused supply chain disruptions and strategic vulnerabilities.
• India's Union Budget 2026-27 includes measures to strengthen its critical minerals ecosystem, such as rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.