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Telangana seeks Centre help as China curbs rare earth exports

Telangana’s manufacturing sector has taken a significant hit following the restrictions imposed by China on rare earth exports, according to the state's IT and Industries Minister, D Sridhar Babu.

News Arena Network - Hyderabad - UPDATED: June 26, 2025, 07:32 PM - 2 min read

China export curbs hit Telangana electronics and EV sector.


Telangana’s manufacturing sector has taken a significant hit following the restrictions imposed by China on rare earth exports, according to the state's IT and Industries Minister, D Sridhar Babu.

 

He urged the Centre to intervene immediately and prioritise viable alternatives. To this end, he met with the Union Minister for Commerce and Industry, Piyush Goyal, in New Delhi and submitted a formal representation.

 

“Rare earth magnets, critical raw materials, and chemicals required for the production of electronics and electric vehicles are largely imported from China, which has recently imposed restrictions on the export of such materials. This has impacted industries involved in the manufacture of electronics and EVs. If this situation continues, it could result in significant losses. Telangana’s manufacturing sector is particularly vulnerable,” Sridhar Babu stated.

 

He added that there is a pressing need for the Union Government to assess the real-time situation and focus on establishing alternative supply arrangements to prevent disruption in the electronics and EV sectors.

 

The Minister also sought central support for the development of industrial infrastructure in the state. He outlined plans for the Hyderabad–Nagpur, Hyderabad–Warangal, Hyderabad–Bengaluru, and Hyderabad–Vijayawada industrial corridors.

 

He requested the sanction of ₹400 crore under the PM Gati Shakti scheme for essential infrastructure as part of the Industrial Smart City project being developed at Zaheerabad, approximately 100 kilometres from Hyderabad.

 

He brought to the Union Minister’s attention that the Hyderabad–Warangal Industrial Corridor (HWIC) had stalled due to the negligence of the previous government.

 

However, the current administration is now developing the Pharma City—part of the corridor—into a “Future City.” He further urged the Centre to release funds for the development of Warangal Airport and several associated industrial nodes.

 

The Minister reminded the Centre that the Telangana government had expressed interest in the national proposal to develop 100 industrial parks and has already submitted its inputs. He requested the allocation of adequate funds for the implementation of these projects.

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