India to build domestic capacity in import-dependent sectors, rare-earth magnets in focus: Shaktikanta Das

India is stepping up efforts to build domestic capacity in sectors where it remains heavily dependent on imports, including rare-earth permanent magnets, principal secretary-2 to the prime minister Shaktikanta Das said on October 4, as he stressed that structural reforms would continue alongside efforts to strengthen macroeconomic and financial stability. "We have done a lot on domestic capacity where we were largely import dependent, and in building long-term capacity in areas where we are dependent on imports, like rare-earth permanent magnets," Das said at the Kautilya Economic Conclave. The push forms part of a broader strategy to strengthen India's resilience against external shocks by reducing vulnerabilities in critical sectors without retreating from global markets. Deepwater exploration in focus Das said the government was also moving to expand domestic energy exploration, including in areas that were earlier classified as no-go zones. "The government has approved the Samudra Manthan scheme. We had no-go zones in oil exploration. We are getting into deepwater exploration," he said. The emphasis on domestic capacity comes at a time when supply-chain disruptions, geopolitical tensions and volatile commodity markets have increased the importance of securing access to critical raw materials and energy resources. Rare-earth permanent magnets are particularly important for sectors such as electric vehicles, renewable energy equipment, electronics and advanced manufacturing, making them a strategic area of focus for domestic capability-building. Structural reforms to continue Das said India would continue with structural reforms while simultaneously strengthening domestic productive capacity and preserving macroeconomic stability. "We are continuing with structural reforms and developing domestic capacity where we were dependent on imports and building macroeconomic and macro-financial stability," he said. Earlier in his address, Das said India's economic resilience was "not accidental", but the outcome of broad and mutually reinforcing reforms undertaken over the past decade. He pointed to flexible inflation targeting, GST, digital payments, banking-sector reforms and fiscal consolidation as measures that had helped build buffers before crises emerged. Atmanirbharta not isolation Das also stressed that the push for self-reliance should not be interpreted as a move towards protectionism or economic isolation. "Atmanirbharta does not mean isolation," he said, adding that India's objective was to build stronger domestic capabilities while remaining integrated with global markets. The approach, he said, would require greater participation in global supply chains alongside domestic capability-building in strategic manufacturing, defence production and critical technologies. Das also identified green hydrogen, sustainable agriculture and circular-economy practices as areas that could drive the next phase of growth. As India advances towards its Viksit Bharat 2047 goal, sustaining reform momentum would remain critical, he said.