New Delhi: India is set to nearly triple incentives for domestic rare earth magnet manufacturing to over ₹7,000 crore, marking a major step toward building self-reliance in this strategic sector.
The expanded incentive plan aims to boost private investment, strengthen local manufacturing, and reduce dependence on Chinese imports. Rare earth magnets are crucial components in electric vehicles, wind turbines, smartphones, and defence systems — sectors heavily impacted by China’s dominance in processing nearly 90% of global rare earth output.
Beijing’s recent export curbs on critical minerals, amid escalating trade tensions with the US, have disrupted global supply chains, prompting countries like India to secure alternative sources.
According to reports, India’s upgraded Production-Linked Incentive (PLI) scheme will support end-to-end development — from exploration and processing to value addition and advanced manufacturing. The government is also exploring partnerships with mineral-rich nations to ensure steady access to raw materials.
Industry experts view this move as part of India’s larger strategy to strengthen its critical minerals ecosystem. The PHD Chamber of Commerce and Industry (PHDCCI) on Monday urged the creation of a dedicated Department of Critical Minerals and called for “aggressive mineral diplomacy,” inter-ministerial coordination, and strategic stockpiling similar to the US oil reserve model.
Experts note that the global shift to clean energy is increasing demand for such materials. Electric vehicles require six times more minerals than conventional cars, while solar and wind technologies are up to three times more resource-intensive than traditional energy sources.
“By scaling up rare earth magnet production, India aims not only to reinforce its manufacturing base but also to emerge as a key player in the global clean energy and electronics value chains,” the report said.
