China’s critical mineral squeeze: GTRI urges urgent localisation drive; reverse-engineering push seen key to cutting 0 bn trade gap
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China's critical mineral squeeze: GTRI urges urgent localisation drive; reverse-engineering push seen key to cutting $100 bn trade gap

Chinaโ€™s escalating export curbs on critical minerals are no longer just strategic warnings but a direct challenge to Indiaโ€™s industrial ambitions, think tank Global Trade Research Initiative (GTRI) said on Thursday, urging immediate action through reverse-engineering and localisation of key imports to reduce dependency on Beijing.โ€œIndia must act to slash Chinese import dependence. There is an urgent need to do reverse-engineering of low- to mid-tech imports, domestic production incentives, and long-term investment in deep-tech manufacturing to reduce overreliance on a geopolitical rival and build economic resilience,โ€ GTRI founder Ajay Srivastava said, PTI reported.GTRI noted that since mid-2023, China has restricted exports of gallium, germanium, and graphite โ€” minerals essential for India’s electronics, defence and clean energy sectors. The curbs have disrupted Indian industryโ€™s supply chains, with strategic ambiguity used to justify the restrictions under the guise of national security.Srivastava also flagged a recent incident where Chinese battery giant CATL allegedly instructed Foxconn to pull Chinese engineers from a plant near Chennai. โ€œThe move disrupted timelines and coordination at a crucial time for India’s electronics and EV supply chain buildout,โ€ he said.As per GTRI, Indiaโ€™s trade deficit with China surged to $100 billion in FY25, with imports rising even as exports fell. Chinese companies now dominate over 80% of Indiaโ€™s supply in key areas such as laptops, solar panels, antibiotics, viscose yarn and lithium-ion batteries.To address this growing imbalance, GTRI recommended setting up sector-specific industrial labs to deconstruct high-volume imports and develop standardised open-access blueprints. These could be shared with MSMEs and large manufacturers to build domestic capacity.โ€œThe first step is to launch a nationwide reverse-engineering initiative,โ€ Srivastava said, adding that a โ€˜Localize-100โ€™ tracker should be launched to monitor localisation of the top 100 imported items from China.



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