Natural Resources MCQ — 2 Practice Questions with Answers

Explanation

India possesses the world's fifth-largest rare earth reserves, located primarily along its eastern and western coastal belts in Odisha, Andhra Pradesh, Tamil Nadu, and Kerala. Despite these reserves, India has historically exported raw monazite sand and imported processed rare earth compounds. Budget 2026-27 announced rare earth corridors to build end-to-end domestic capacity.

Explanation

China controls approximately 60-70% of global rare earth mining and over 85% of global processing capacity. This dominance gives China significant strategic leverage. Budget 2026-27 announced rare earth corridors in mineral-rich coastal states to reduce India's dependence on Chinese REE imports, critical for EVs, defence electronics, and advanced technology.