Content

1. Bengal second-lowest in convictions for crimes against women
2. The future of the IMEC
3. India’s Municipal Finance Crisis
4. Meet AI chatbots replacing India’s call-centre staff
5. The new power of rare earths

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Bengal second-lowest in convictions for crimes against women

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 Why in News

• Trigger Event: An alleged gang rape of a medical student from Odisha in Durgapur (Oct 2025).
• Political Reaction: CM Mamata Banerjee’s remarks—suggesting girls should avoid going out at night—sparked public and Opposition backlash.
• Significance: The issue reopens debates on women’s safety, accountability, victim-blaming, and governance failure in West Bengal.

Relevance :

• GS 1: Social issues – women’s safety, gender inequality, victim-blaming, societal norms.
• GS 2: Governance & law – criminal justice system efficiency, role of police and judiciary, NCRB data analysis, implementation of Nirbhaya Fund schemes, fast-track courts.

Background Context

• Previous Incident (2024):
  • A woman doctor was raped and murdered at R.G. Kar Medical College, Kolkata.
  • The State government issued guidelines to limit women doctors’ night shifts, later withdrawn after Supreme Court criticism for gender discrimination.
• Current Case (2025):
  • The victim, a medical student from Odisha, was allegedly gang-raped in Durgapur.
  • Public anger intensified due to perceived pattern of administrative inaction.

Statistical Reality: Crime Against Women in West Bengal (NCRB Data 2018–2023)

Indicator	West Bengal’s Status	Rank (India)	Trend/Observation
Crimes against women (annual average >30,000)	Very High	Top 4	Consistent since 2018
Acid attack & attempt to acid attack	Highest	1st	2021–2023
Attempt to rape	Second highest	2nd	Since 2019
Cruelty by husband or relatives	High	3rd (after Rajasthan & UP)	2018–2023
Conviction rate (avg. 2017–2023)	~5%	35th/36 States	Extremely poor
Conviction rate (2022 peak)	8.9%	Still among lowest	Marginal improvement
Acquittals (2023)	>19,000 cases	Highest	Sharp increase from <8,000
Pending trials (2023)	~3.7 lakh cases	Highest	+56% rise since 2017

Core Issues Identified

• Low Conviction Rate:
  • Reflects weak investigation, poor prosecution, and witness intimidation.
  • Only 1 in 12 cases result in conviction (2022).
• High Acquittals & Pendency:
  • Courts overburdened; lack of fast-track courts and forensic infrastructure.
  • Delay → Justice Denied → Impunity.
• Systemic Gaps:
  • Poor coordination between police and judiciary.
  • Underreporting due to stigma and police apathy.
  • Lack of victim support services and shelters.

Socio-Political Dimensions

• Governance Accountability:
  • Opposition alleges failure of law and order.
  • State government’s “zero tolerance” claim contradicted by data.
• Gender Sensitivity Deficit:
  • Administrative response often patriarchal and moralistic.
  • Instead of institutional reform, discourse shifts to individual behaviour.
• Judicial and Civil Society Response:
  • Calcutta High Court and Supreme Court previously intervened in related cases.
  • Civil society demands independent oversight and fast-track mechanisms.

Broader Context in India

• National Picture (NCRB 2023):
  • India recorded 4.45 lakh crimes against women, a 4% rise over 2022.
  • National conviction rate ~30%, West Bengal only ~5%, showing sharp contrast.
  • Highlights state-level variation and policy implementation gaps.

Policy and Legal Framework

• Legal Safeguards:
  • IPC Sections 354, 376, etc. (sexual assault & rape).
  • Criminal Law (Amendment) Act, 2013 post-Nirbhaya.
  • Nirbhaya Fund, One-Stop Centres, Women Helplines (181).
• Implementation in WB:
  • Underutilization of central schemes.
  • Weak forensic and police infrastructure despite repeated directives.

Way Forward

• Institutional Reforms:
  • Establish state-level fast-track courts for gender crimes.
  • Modernize forensic labs; integrate digital tracking of cases.
• Police Reforms:
  • Increase women officers, sensitization training, and independent oversight.
• Victim Support Systems:
  • Strengthen One-Stop Centres, psychological aid, and compensation mechanisms.
• Public Accountability:
  • Transparent crime and conviction dashboards.
  • Stronger civil society engagement in monitoring and advocacy.

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The future of the IMEC

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Why in News

• Recent Context (Oct 2025):
  • Rising trade frictions with the U.S. have prompted India to diversify trade partnerships with Europe, West Asia, and beyond.
  • India is finalizing a trade deal with the U.K. and negotiating with the European Union.
  • Simultaneously, renewed emphasis is on operationalizing the India–Middle East–Europe Economic Corridor (IMEC) — envisioned as a strategic trade and connectivity corridor linking India, the Gulf, and Europe.
  • However, the West Asian instability post–Hamas attacks (Oct 2023) continues to threaten the corridor’s feasibility.

Relevance :

• GS 2: International relations – India–Middle East–Europe connectivity, trade corridors, I2U2 and multilateral frameworks, strategic autonomy.
• GS 3: Economic development – infrastructure, logistics, energy trade (hydrogen/electricity), supply chain resilience, China’s BRI comparison.
• GS 3: Security – regional stability in West Asia, maritime and cyber dimensions, alternative trade routes amid conflicts.

Background and Genesis

• Launch:
  • Announced during the G-20 Summit in New Delhi (Sept 2023) in the presence of leaders from India, the U.S., Saudi Arabia, UAE, France, Germany, Italy, and the European Commission.
• Origin:
  • Conceived within the I2U2 framework (India, Israel, UAE, U.S.) aimed at creating economic integration and infrastructure connectivity across Asia and Europe.
• Geopolitical Context:
  • The Abraham Accords (2020) normalized Israel–Arab relations, enabling such a corridor proposal.
  • Optimism in 2023 for regional peace created momentum for transnational infrastructure planning.

Vision and Structure of IMEC

• Objective: To establish a strategic multi-modal corridor enhancing connectivity between India, the Arabian Peninsula, and Europe.
• Components:
  • Maritime Connectivity: Between Indian ports and Gulf ports (e.g., Dubai, Fujairah).
  • Rail Connectivity: Linking UAE–Saudi Arabia–Jordan–Israel, culminating at Haifa Port on the Mediterranean.
  • Sea Route: Haifa to European ports (e.g., Greece, Italy, France).
• Complementary Infrastructure:
  • Clean hydrogen pipeline.
  • High-voltage electricity cable.
  • Undersea digital cable (telecom data link).
  • Integrated logistics and port development.

Strategic Rationale for India

• Diversification Amid U.S. Trade Frictions:
  • Reduce overdependence on U.S. markets; expand Europe–West Asia trade axis.
• Alternative to BRI:
  • Offers a democratic, rules-based counterbalance to China’s Belt and Road Initiative (BRI).
• Energy and Logistics Security:
  • Seamless energy transport (hydrogen, electricity).
  • Faster supply chain integration with EU markets.
• Economic Opportunity:
  • Europe is India’s largest trade partner ($136 billion trade, 2024–25); IMEC can reduce freight time and cost.
• Geopolitical Leverage:
  • Enhances India’s strategic role in West Asia, cementing ties with Saudi Arabia, UAE, and Israel.

Key Geopolitical Developments Impacting IMEC

• October 7, 2023 – Hamas Attacks:
  • Sparked Israel–Hamas conflict, destabilizing the entire West Asian region.
  • Strained Israel’s ties with Gulf countries that were expected to anchor IMEC.
• Red Sea Crisis (2024–25):
  • Houthi attacks on shipping disrupted Suez Canal trade routes, increasing global freight costs by 30–40%.
  • Underscored the need for secure alternative corridors like IMEC.
• Arctic Route Competition:
  • Melting ice caps have opened northern sea lanes, benefitting Russia, China, and the U.S., diverting trade from the Mediterranean.
  • Hence, Italy and other Mediterranean economies see IMEC as crucial to retain relevance in global shipping.

Economic and Strategic Significance

• Trade and Connectivity:
  • Reduces India–Europe freight time by up to 40% compared to Suez route.
  • Creates interoperable logistics networks connecting Asia, Gulf, and Europe.
• Energy Transition:
  • Facilitates clean hydrogen trade, aligning with India’s National Green Hydrogen Mission.
• Digital Integration:
  • Undersea cables to enhance data and telecom linkages between India, West Asia, and Europe.
• Strategic Stability:
  • Deepens India–Gulf strategic partnerships, reducing Pakistan’s influence in the region.
• Supply Chain Resilience:
  • Supports “China+1” diversification, anchoring trusted value chains from India to Europe.

Challenges and Constraints

• Security Risks:
  • Ongoing Israel–Hamas conflict, Iran–Saudi rivalry, and Houthi threats could derail regional transit stability.
• Political Uncertainty:
  • Shifting U.S.–West Asia diplomacy and changing Arab public sentiments toward Israel.
• Infrastructure Gaps:
  • Need for standardization of rail gauges, customs frameworks, and multimodal coordination.
• Financial Viability:
  • High upfront cost (~$20–25 billion estimated). Requires multilateral investment and risk-sharing.
• Competition from Arctic and BRI Routes:
  • Arctic route reduces Europe–Asia travel time by 40%.
  • China’s BRI continues to dominate Eurasian logistics.

Diplomatic and Strategic Opportunities

• India–Europe Partnership Renewal:
  • EU’s Global Gateway Initiative (2021) aligns with IMEC goals of sustainable infrastructure.
• India–Gulf Economic Integration:
  • Deepening ties with Saudi Arabia and UAE under Comprehensive Economic Partnership Agreements (CEPAs).
• Regional Balancing:
  • IMEC provides leverage for India’s strategic autonomy—collaborating with the West without antagonizing the Global South.
• Countering Pakistan’s Narrative:
  • Strong India–Arab economic linkages marginalize Pakistan’s attempts at forming anti-India coalitions in West Asia.

Way Forward

• Institutionalizing IMEC:
  • Establish a Permanent Coordination Mechanism among members.
  • Integrate with I2U2 framework for technology and financing.
• Expanding Participation:
  • Engage Egypt, Oman, and Qatar for greater regional integration.
• Focus on Dual Security–Economy Strategy:
  • Combine maritime security cooperation with economic corridor development.
• Parallel Trade Diplomacy:
  • Expedite FTA negotiations with EU and GCC to enhance market access.
• Public–Private Collaboration:
  • Mobilize Indian corporates and Gulf sovereign funds for infrastructure financing.

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India’s Municipal Finance Crisis

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Context:

• Despite urban India generating nearly two-thirds of the national GDP, its municipalities control less than 1% of India’s total tax revenue.
• Core Issue:
  The fiscal architecture of India’s federalism has left cities financially powerless — over-centralised, grant-dependent, and unable to self-finance essential services or issue credible municipal bonds.

Relevance :

• GS 2: Governance – fiscal federalism, 74th Constitutional Amendment, urban governance reforms, intergovernmental transfers.
• GS 3: Economy – municipal bonds, urban revenue generation, property tax reforms, urban infrastructure financing, public goods delivery.
• GS 1: Society – impact on citizens’ welfare, equitable access to urban services, participatory governance.

Background: India’s Urban Revenue Paradox

• Urban India’s Contribution: ~66% of GDP, yet <1% of tax powers.
• Post-GST Impact (2017):
  • Municipalities lost ~19% of their own revenue sources (e.g., octroi, entry tax, local surcharges).
  • Revenue powers were absorbed into the GST regime, making cities reliant on state and central transfers.
• Result:
  • Revenue centralisation: States and Centre retain >95% of tax powers.
  • Fiscal autonomy erosion: Cities became implementers, not governors.

How Did Cities Lose Fiscal Autonomy

• Centralisation of Taxes:
  • GST subsumed local taxes without creating municipal compensation mechanisms.
• Weak Implementation of 74th Amendment (1992):
  • Cities were to be “third tier of governance”, but remained administratively dependent on states.
• Conditional Grants:
  • Funds come with strict conditions (e.g., AMRUT, Smart Cities Mission), limiting local discretion.
• Low Own-Revenue Base:
  • Property tax contributes only 20–25% of total municipal revenues — politically sensitive and poorly assessed.
  • User charges (water, waste, parking) underpriced or poorly collected.
• Creditworthiness Crisis:
  • Ratings and RBI norms treat grants as “non-recurring income”, making cities appear fiscally weak.

The Problem: Flawed Model of Fiscal Federalism

• Inadequate:
  • Cities lack predictable and untied revenues.
  • Dependence on higher governments leads to fiscal uncertainty.
• Unjust:
  • Burden shifted onto urban residents through user-pay logic — privatising public goods (water, sanitation, lighting).
  • Penalises poorer households in informal settlements.
• Ideological Flaw:
  • Treats grants as charity, not entitlements.
  • Undermines the redistributive spirit of cooperative federalism.

Municipal Bonds — The “New Frontier” or a Mirage?

• Government Push:
  • NITI Aayog, Finance Commission, and World Bank promote municipal bonds for infrastructure finance.
• Reality Check:
  • Only a handful of cities (e.g., Pune, Ahmedabad, Indore) have successfully issued bonds.
  • Low investor confidence due to:
    • Weak financial transparency and audits.
    • No stable, predictable revenue stream.
    • Dependence on ad-hoc state/central grants.
• Credibility Problem:
  • Current credit rating system judges cities narrowly by own revenue, ignoring grants and governance performance.
  • This undervalues cities’ real fiscal position.

Why the Current Fiscal Prescription is “Inadequate and Unjust”

• Inadequate because:
  • Property tax base too small and politically sensitive.
  • Administrative weakness in assessment and collection.
  • User charges regressive, hurting low-income groups.
• Unjust because:
  • Converts collective goods into commodities (e.g., water, waste).
  • Blames cities for inefficiency, while withholding fiscal authority.
  • Residents pay more, yet get poor services due to funding shortfalls.

Comparative Perspective: Lessons from Scandinavia

• Denmark, Sweden, Norway Model:
  • Cities can levy and collect income taxes directly.
  • Enjoy predictable intergovernmental transfers.
  • Result: Transparent, accountable, and citizen-trusted local governance.
• Outcome:
  • Decentralised fiscal power = efficient urban welfare states.
  • Transfers treated as part of a shared fiscal ecosystem, not as discretionary charity.

The Indian Paradox

• Centralised Power, Decentralised Burden:
  • Cities are expected to deliver on solid waste, housing, climate resilience, and digital infrastructure without funds.
• Revenue Inversion:
  • Accountability lies at local level; fiscal power lies at central level.
  • Creates a “democracy deficit” — local governments answerable to citizens but dependent on distant bureaucracies for funds.

The Way Forward

1. Reimagine Fiscal Federalism:
   1. Recognize cities as equal fiscal entities, not beneficiaries.
   1. Mandate constitutionally guaranteed urban revenue-sharing.
2. Reform Municipal Bonds Framework:
   1. Treat grants and shared taxes as legitimate income for creditworthiness.
   1. Allow GST compensation or state shares as collateral.
3. Empower Local Taxation:
   1. Modernize property tax systems (GIS mapping, annual revision).
   1. Rationalize user charges while protecting low-income groups.
4. Institutionalise Urban Transfers:
   1. Create Urban Finance Commissions at the state level.
   1. Link transfers to transparency, citizen participation, and audit compliance.
5. Democratize Urban Governance:
   1. Strengthen ward committees and citizen budgeting.
   1. Shift from technocratic to participatory fiscal management.

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Meet AI chatbots replacing India’s call-centre staff

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 Why is it in the News?

• A Reuters investigation (Oct 2025) highlighted how AI chatbots developed by Indian startups like LimeChat (Bengaluru-based) are transforming the customer service and IT outsourcing landscape.
• LimeChat claims its generative AI agents reduce workforce needs by 80%, signaling a major shift in India’s $283 billion IT and BPM (Business Process Management) sector.
• Raises questions on AI-led automation, employment security, and India’s readiness to manage large-scale technological disruption.

Relevance :

• GS 3: Science & technology – AI, automation, digital workforce, IT-BPM sector transformation.
• GS 2: Governance – policy responses to technological disruption, employment regulation, reskilling frameworks.
• GS 1: Society – youth employment, gendered workforce impact, social adaptation to AI disruption.

Background: India’s IT and Outsourcing Sector

• India = world’s back-office hub: Accounts for 52% of global outsourcing (NASSCOM, 2025).
• Contributes 7.5% to India’s GDP; employs over 5 million directly (2024).
• Major strengths: Cheap labour, English proficiency, and large skilled workforce.
• Now faces AI-led automation pressures, especially in routine jobs (customer care, payroll, technical support).

What is Happening: AI-Led Disruption

1. Rise of Conversational AI

• Global market projected to reach $41 billion by 2030, growing at 24% annually (Grand View Research).
• Startups like LimeChat, Haptik (Reliance-owned), and others are automating customer interactions via chatbots.
• AI agents can handle 70% of customer complaints today — aiming for 90–95% automation within a year.

2. Economic Model

• LimeChat’s service: ₹1 lakh/month automates work of 15 agents (~$1,130 = salary of 3 human staff).
• Sales growth: From $79,000 (2022) → $1.5 million (2024) (19x rise).
• Integrations with Microsoft Azure to enhance natural language processing and multilingual capabilities.

3. Automation Impact

• Jefferies (Sept 2025) forecast:
  • 50% revenue hit for call centres.
  • 35% hit for other back-office functions within 5 years.
• TeamLease Digital data:
  • BPM sector hiring fell drastically:
    • +1,77,000 (2021–22)
    • +1,30,000 (2022–23)
    • <17,000 (2023–24 & 2024–25).
• Workers report AI replacing human evaluators and call quality analysts.
• Increasing job insecurity among India’s 1.65 million BPM employees.

Policy and Governance Dimensions

1. Government Position

• PM Narendra Modi (Feb 2025): “Work does not disappear; its nature changes.”
• Official stance: AI’s impact on employment will be limited in the long run due to new job creation in AI coordination, design, and oversight.
• Lack of dedicated AI-labour impact assessment mechanism so far.

2. Expert Concerns

• Sumita Dawra (ex-Labour Secretary): Advocates for unemployment benefits & social security reforms during AI transition.
• Santosh Mehrotra (University of Bath): Warns that India lacks a policy game plan for workforce reskilling amid AI disruption.

3. Geopolitical/Economic Risks

• U.S. policies:
  • 25% tax proposal on outsourcing users.
  • $100,000 H-1B visa fee.
  • Tariffs on tech services.
• Combined with AI automation, these pose a double shock to India’s IT exports.

Social Implications

• Youth employment crisis risk — fresh graduates face shrinking entry-level IT roles.
• Women disproportionately affected — many occupy back-office or voice-process jobs now being automated.
• Cultural dimension: Many employees, like “Megha,” conceal layoffs from families — indicating social stigma of tech job loss.
• Customer perspective: Despite AI’s efficiency, EY Survey (Aug 2024) found:
  • 78% Indians still prefer human support online.
  • 62% purchases influenced by AI — shows growing but cautious consumer acceptance.

Opportunities for India

Transition from “Back Office” to “AI Factory”:

• Focus on AI engineering, model fine-tuning, and data annotation.
  • Potential to export AI expertise, similar to IT exports in 2000s.

Upskilling Imperative:

• Shift towards AI deployment engineers, process analysts, data trainers, and algorithm auditors.
  • Need for AI literacy integration in higher education.

AI Governance Leadership:

• Develop frameworks for ethical AI use, employment impact assessments, and social security nets.

Challenges Ahead

• Skill mismatch: Current workforce not trained for generative AI, automation design, or supervision.
• Policy lag: No AI-specific labour transition strategy or unemployment insurance.
• Corporate risk: Over-automation may harm customer trust (as seen with Sweden’s Klarna “course correction”).
• Ethical and accountability issues: Chatbots providing incomplete or misleading responses (e.g., Knya case).

Conclusion

• India stands at a critical inflection point — balancing automation-led productivity with inclusive employment.
• If managed well: India can become the world’s AI deployment hub (“AI factory”).
• If mismanaged: Risk of technological unemployment, social disruption, and loss of demographic dividend.
• Requires a proactive policy mix — reskilling, social protection, ethical AI frameworks, and strategic public–private collaboration.

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The new power of rare earths

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Why is it in the News?

• Growing China’s dominance in rare earth elements (REEs) and its strategic leverage in global trade, especially amid US–China tensions.
• Rare earths are critical for clean energy, electronics, defense, and high-tech manufacturing, making them geopolitically sensitive.
• The news is timely due to:
  • China’s export controls and potential supply restrictions.
  • Global concerns about technological supply chain security.
  • Rising strategic competition between China and the US in tech and defense sectors.

Relevance :

• GS 3: Economy – strategic minerals, critical raw materials for technology, EVs, renewable energy.
• GS 2: International relations – China’s dominance, US-China competition, Indo-Pacific mineral diplomacy, supply chain security.
• GS 3: Science & technology – green energy tech, EV batteries, high-tech manufacturing, rare earth metallurgy.

Basics: Rare Earth Elements (REEs)

• Definition: 17 metallic elements (15 lanthanides + scandium + yttrium) with high electrical conductivity, magnetic properties, and heat resistance.
• Applications:
  • Electronics: smartphones, semiconductors, display screens.
  • Renewable energy: wind turbines, EV batteries, magnets.
  • Defense: fighter jets, missile guidance systems.
• Misnomer: Despite the name, REEs are not rare in the Earth’s crust but occur in low concentrations that make extraction economically challenging.

Global Reserves & Production (2021–2022)

• Reserves (in tonnes of REE equivalent content):
  • Vietnam: 22,000
  • Brazil: 21,000
  • Russia: 12,000
  • India: 6,90,000 (1st in land-based reserves)
  • Australia: 42,000
  • USA: 23,900
  • Other countries: 42,000
• Production of Rare Earth Oxides (2020–2022):
  • China: 180,000–210,000 tonnes → >50% of global production.
  • USA: 25,000–28,500 tonnes.
  • Australia: 14,500–15,900 tonnes.
  • Others: Russia, Vietnam, Malaysia, Madagascar contribute smaller shares.

China’s Strategic Dominance

• Controls ~60–80% of global REE production and processing, creating a near-monopoly.
• Extracts and refines REEs at low costs due to:
  • Vertical integration of mining, separation, and refining.
  • Economies of scale and state subsidies.
• Leverages REEs as a geopolitical tool:
  • Past examples: export restrictions to Japan (2010), potential leverage against the US and allies.
  • Creates supply chain vulnerabilities for critical industries in Europe, US, Japan.

Challenges for Other Countries

• High extraction costs: REEs often in low concentrations, requiring environmentally intensive processes.
• Limited refining capability: Even countries with reserves (USA, Australia, India) rely on China for refining and separation.
• Geopolitical dependence: Western countries cannot easily replace Chinese REEs due to lack of infrastructure.

Global Market Dynamics

• Demand surge: Driven by EVs, wind turbines, electronics, and defense tech.
• China’s pricing power: Can influence global REE prices through:
  • Export quotas
  • Tariffs
  • Technology partnerships and strategic stockpiling
• US & allied responses: Initiatives to develop domestic extraction and processing, e.g., Mountain Pass mine (USA), Australian ventures.

India’s Position

• India has 6,90,000 tonnes of REE reserves (notably in Odisha, Andhra Pradesh, and Karnataka).
• Challenges:
  • Low extraction and refining capacity.
  • Lack of commercial-scale processing plants.
• Opportunities:
  • Partner with US, Japan, Australia to develop domestic REE value chain.
  • Potential hub for strategic minerals in the Indo-Pacific supply chain.

Environmental and Regulatory Issues

• REE extraction is chemically intensive and environmentally risky, producing toxic waste.
• Countries need strict regulations and eco-friendly technologies for sustainable mining.
• China has historically prioritized economic output over environmental concerns, giving it cost advantage.

Impact on Global Economy and Geopolitics

• REEs are critical for green energy transition: EVs, wind turbines, batteries.
• Any supply disruption by China can affect:
  • US and EU defense industries.
  • EV and semiconductor manufacturing.
• Countries are increasingly investing in domestic REE projects and diversifying supply chains.