India is intensifying efforts to explore, mine and process rare-earth minerals, with the government reporting progress in resource identification and policy reforms aimed at boosting domestic production of these critical materials.

Mines and Coal Minister G. Kishan Reddy informed the Rajya Sabha on February 3rd that the Atomic Minerals Directorate for Exploration and Research has identified 139 rare-earth mineral deposits across the country.

These include 136 beach sand mineral deposits containing 13.15 million tons of monazite, with approximately 7.23 million tons of in-situ Rare Earth Oxide equivalent resources located across Tamil Nadu, Kerala, Andhra Pradesh, Odisha, Maharashtra, Gujarat, Jharkhand and West Bengal.

In addition, three hard rock deposits in Rajasthan and Gujarat contain an estimated 1.29 million tons of in-situ Rare Earth Oxide equivalent resources.

Despite possessing adequate rare-earth resources and extraction capabilities, India has faced challenges in achieving commercial-scale mining and processing.

The government attributed this to limitations in available technology, the absence of midstream and downstream industries and the complex nature of Indian deposits, which typically contain lower-grade ores associated with radioactive elements such as uranium and thorium.

These factors increase costs and extend processing timelines.

To address these constraints, several policy measures have been introduced. The Mines and Minerals (Development and Regulation) Act was amended in 2023 to facilitate the exploration and mining of 24 critical and strategic minerals, including rare-earth elements.

The Ministry of Mines has since auctioned 46 critical mineral blocks across six tranches, including two blocks specifically earmarked for rare-earth elements under the new Exploration Licence category.

In January 2025, the Union Cabinet approved the National Critical Mineral Mission, aimed at securing a long-term, sustainable supply of critical minerals and strengthening India's value chain from exploration through to processing and recovery.

Regulatory reforms have also streamlined environmental clearances for critical mineral projects, including exemptions from public hearing requirements.

More recently, in November 2025, the Cabinet approved a scheme valued at Rs. 72.8 billion (US$ 805.2 million) to establish 6,000 metric tons per annum of integrated rare-earth permanent magnet manufacturing capacity in India.

The initiative is intended to enhance self-reliance and position the country as a significant participant in the global rare-earth permanent magnet market.

India is among three to four countries globally with established plant capacity, technology and a skilled workforce in the rare-earth sector.

However, Minister Reddy noted that domestic resources are dominated by light rare-earth elements, and that the mining of monazite remains under government control due to its association with radioactive materials.