China tightens hold over India’s key imports for new-age production in World Economy News 05/06/2026 India is seeking to diversify its sourcing network for new-age manufacturing for which it has set ambitious targets. But China’s grip over India’s clean-energy and advanced manufacturing supply chain is only getting stronger. The northern neighbour controls more than 84% of India’s lithium-ion battery imports, 78% of permanent magnet supplies and over half of lithium carbonate imports. This sets the context for India’s newly signed critical minerals framework with the United States. India’s imports of selected critical minerals and rare earths rose 6.45% year-on-year to $521.75 million in FY26 from $490.12 million in FY25 as demand accelerated from electric mobility, battery storage systems, semiconductors, electronics and renewable energy manufacturing. Analysing Import Bill The India-US critical minerals framework signed on May 26 seeks to gradually reshape supply chains across mining, refining, processing, recycling and strategic investments as both countries attempt to build “trusted” alternatives to China-dominated networks. The scale of China’s dominance remains particularly visible in downstream manufacturing ecosystems that determine global clean-energy economics. Permanent magnets — critical for EV motors, wind turbines, electronics and defence systems — remained India’s largest import category among selected critical minerals at $221.66 million in FY2026, up from $206.26 million in FY2025. China alone accounted for 78% of imports, while the US contributed just 1%. In rare earth metals, India imported $3.44 million worth during FY2026, with China accounting for 68% of supplies and Japan 27%. The US share remained only 1%. An analysis by Rubix Data Sciences showed China accounted for more than 84% of India’s lithium-ion battery imports during FY2026, underlining India’s dependence not only on raw materials but also on processed battery ecosystems and integrat