China's loss could be India's gain

What is China's loss could be India's gain. And this is in none other than rare earth minerals. At present, China accounts for about 95% of the global output of rare-earth minerals. These are used in a range of electronic equipment. However, China in recent times has restricted the export of these minerals through export quotas and taxes. This has pushed up the prices of these minerals. Further, China has set a condition that access to these minerals would be possible if manufacturing facilities are set up in the country. This is where India can step in. It is currently the world's second largest producer with large deposits of rare earth minerals. However, when compared to China, production is paltry. Indeed, in 2010, when China's production stood at 130,000 tons, India's was a measly 2,700 tons. Further, India has other problems in the form of corruption and red tape in the mining sector. In the past, even US produced these minerals but China became the undisputed le ader on account of its low cost advantage. Now with prices rising, there is incentive for other countries including India to bolster production. But whether our country will be able to do so remains to be seen.