India is embarking on a significant mission to secure its technological sovereignty and enhance its strategic resilience through the development of a robust domestic rare earth magnet industry. Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, has been a vocal proponent of this initiative, emphasizing its importance for India's future in a rapidly evolving global landscape.
The Union Cabinet has already approved a ₹7,280 crore scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM) in India. REPMs are essential components in various sectors, including electric vehicles, renewable energy, electronics, aerospace, and defense. The scheme aims to support the creation of integrated REPM manufacturing facilities, from the conversion of rare earth oxides to the production of magnets.
Kumaraswamy has stressed that this initiative will place India among an "allied group of nations" capable of producing these critical components domestically, reducing reliance on imports and enhancing strategic autonomy. He highlighted that this program would strengthen India's strategic and industrial supply chains and create high-value jobs in deep technology sectors. Furthermore, it is expected to support advanced R&D and commercialization, positioning India as a global hub for frontier manufacturing.
In a recent stakeholder consultation meeting, Kumaraswamy emphasized that the scheme represents a pivotal step towards establishing a self-reliant, resilient, and globally competitive ecosystem for REPMs, aligning with the vision of Viksit Bharat @2047. He urged both domestic and international players to participate in the bidding process, contributing to India's long-term growth story. The Ministry of Heavy Industries is currently finalizing the Request for Proposal (RfP) for the scheme.
The government has assured the supply of 500 tonnes of rare earth oxides to enhance raw material security, which is crucial for the production of EVs, renewable energy systems, and defense equipment. This commitment addresses a key concern for manufacturers and underscores the government's dedication to fostering a thriving domestic industry.
This initiative is particularly important as the rare earth magnet market is currently dominated by a handful of global players. By establishing an end-to-end value chain for producing high-performance rare earth magnets, India aims to reduce its dependence on imports and enhance its strategic autonomy.
The Rare Earth Magnet Manufacturing Scheme includes ₹6,450 crore in sales-linked incentives on REPM sales and ₹750 crore in capital subsidy for setting up an aggregate of 6,000 MTPA of REPM manufacturing capacity.
Union Minister Ashwini Vaishnaw has also emphasized the importance of securing critical mineral supply chains for India's goal of Viksit Bharat. He is currently in the United States participating in a Critical Minerals Ministerial meeting.
Through targeted support for both capital expenditure and operational expenditure requirements, the government aims to bridge cost gaps, offer tariff relief on key equipment, and ensure continuity of supply in the face of rising global restrictions. This comprehensive approach demonstrates the government's commitment to creating a conducive environment for the growth of the domestic rare earth magnet industry, ultimately contributing to India's strategic resilience and technological leadership.