India possesses the world's third-largest rare earth reserves, estimated at 6.9 million tonnes, but ranks seventh globally in production with only 2,900 tonnes in 2024. This significant gap between reserves and output is attributed to structural bottlenecks, including complex mining regulations and the presence of radioactive thorium in monazite sands, which complicates processing. Historically, rare earths were treated as by-products rather than strategic resources, further limiting production efforts.