China Lifts Export Curbs on Fertilisers, Rare Earths and Machinery to India

In a significant move towards normalising bilateral trade, China has lifted export restrictions on fertilisers, rare earth minerals and tunnel boring machines to India, as per news reports. This follows the diplomatic dialogues between the nations, aimed at resolving trade disruptions and strategic tensions.

Export Resumption Strengthens Economic Cooperation

China has initiated the shipment of fertilisers, rare earth magnets and tunnel boring machines to India, three categories of goods that had been restricted due to previous security concerns. Indian External Affairs Minister S. Jaishankar had raised these issues in meetings with Chinese counterpart Wang Yi during July 2025. The immediate impact is expected across India's agriculture, infrastructure and manufacturing sectors.

Fertiliser Restrictions Had Hit Indian Agriculture

The curbs had particularly affected supplies of Di-Ammonium Phosphate (DAP), critical for the Rabi season. With China's export resumption, Indian fertiliser stocks are likely to replenish, ensuring timely distribution for the cropping cycle. Given China’s dominant role in global fertiliser supply chains, this move relieves pressure on India's procurement channels.

Significance of Rare Earth Minerals for Indian Industry

Rare earths are critical inputs in electronics, automotive and green technology production. Chinese controls had triggered production slowdowns in India due to limited availability. With normalised trade, factories dependent on rare earths can now scale up operations smoothly, aiding in meeting local and export commitments.

Read More: India May Ease Curbs on Chinese Investments to Boost FDI and Trade!

Boost to Infrastructure Projects via Tunnel Boring Machines

Several infrastructure projects, including metro, road and railway tunnels had come to a standstill due to delays in tunnel boring machines once sourced from China. With the movement of shipments already underway, mega-projects under India’s urban development mission are set to regain construction momentum.

Improving Diplomatic Ties Behind Policy Shift

This strategic thaw follows positive military disengagement developments along the Line of Actual Control and a diplomatic consensus to re-establish trust. Analysts view the latest trade decisions as part of broader confidence-building efforts between the two Asian giants.

Conclusion

The lifting of Chinese export curbs on crucial goods comes as a timely boost to India's key industries. Fertilisers, rare earths and tunnel boring machines are instrumental to agriculture, manufacturing and infrastructure development, respectively. With trade now resuming, both economic growth and bilateral relations are poised for gradual recovery.

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