The Union Cabinet has approved a ₹7,280-crore scheme designed to boost domestic manufacturing of sintered Rare Earth Permanent Magnets (REPM), marking a major step toward reducing India’s dependence on imports and strengthening its position in the global magnet supply chain. The new initiative targets the creation of 6,000 metric tonnes per annum of fully integrated REPM production capacity, covering the entire value chain from rare-earth oxides to finished high-strength magnets used across critical industries.
Under the scheme, ₹6,450 crore will be offered as sales-linked incentives for a period of five years, while ₹750 crore is earmarked as capital subsidy for setting up manufacturing units. The scheme will run for seven years, including a two-year setup phase and a five-year incentive period. Through a global competitive bidding process, the government plans to select five beneficiaries, each eligible for up to 1,200 MTPA of manufacturing capacity.
Rare Earth Permanent Magnets play a central role in several high-growth sectors such as electric mobility, renewable energy, electronics, aerospace, and defence. India currently imports most of its REPM requirements, with China dominating the global market. The new scheme is expected to change this landscape by encouraging companies to invest in refining, processing, alloying, and magnet-making technologies within the country.
The initiative aims to develop an end-to-end REPM ecosystem, securing critical supply chains for domestic industries while supporting India’s long-term ambition of achieving Net Zero emissions by 2070. It is also aligned with the broader vision of creating a technologically advanced and globally competitive industrial base as part of the Viksit Bharat roadmap for 2047.
By promoting indigenous production of high-performance magnets, the scheme positions India to capture a greater share of the global REPM market and reduce strategic vulnerabilities linked to import dependence.
