India has taken a significant strategic step towards securing its critical mineral supply chain by approving a ₹7,000 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets. The initiative aims to reduce import dependence, strengthen industrial self-reliance, and support high-growth sectors crucial to India’s long-term economic and strategic interests.
India has substantial rare earth mineral reserves spread across coastal and inland regions, including states such as Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. These deposits form a strong raw material base for building an integrated domestic rare earth ecosystem.
The approved scheme, titled “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)”, seeks to establish India’s first end-to-end manufacturing ecosystem for high-value magnets. It targets an annual capacity of 6,000 metric tonnes, covering the full value chain from rare earth oxides to finished permanent magnets.
Sintered rare earth magnets are critical for electric vehicles, wind turbines, electronics, aerospace, and defence systems. Currently, India relies heavily on imports—particularly from China—for these materials. The new scheme is expected to enhance supply chain resilience, support clean energy transition goals, generate employment, and strengthen India’s strategic autonomy.
Aligned with Atmanirbhar Bharat and the Viksit Bharat 2047 vision, and supported by international partnerships with countries like Australia and Argentina, the initiative positions rare earths as a cornerstone of India’s future industrial and technological growth.
