India is taking a significant step toward securing critical materials for its manufacturing sector. Four Indian companies — Continental India, DE Diamond, Hitachi, and Jay Ushin — have become the first to receive licenses to import China’s closely guarded rare earth magnets, according to industry sources.

These companies, key suppliers to automakers like Maruti, were granted import approvals under strict conditions. The magnets cannot be re-exported to the US or used for defense purposes.

China’s dominance in rare earths has long been a strategic tool in its trade tensions with the US. The latest move comes amid renewed friction. This occurs after Beijing tightened its export rules this month, requiring government approval and disclosure for any shipment containing even trace amounts of rare earths.

The development sparked a strong reaction from Washington. US President Donald Trump announced a 100% tariff on Chinese goods starting 1st November.

The Ministry of External Affairs confirmed that some Indian firms have secured licenses. It said India is assessing how the recent US-China agreement on rare-earth trade might affect its own interests.

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