What's Happening?
India has launched a scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of Rs 7,280 crore. The initiative aims to enhance India's participation in global advanced-materials value chains while reducing
import dependence. The scheme will establish 6,000 metric tonnes per annum of integrated REPM manufacturing capacity, covering the full chain from rare-earth oxides to finished magnets. It includes Rs 6,450 crore as sales-linked incentives over five years and a Rs 750 crore capital subsidy. The Ministry of Mines has also entered into bilateral agreements with mineral-rich countries to build resilient critical minerals supply chains.
Why It's Important?
This scheme is crucial for India's long-term industrial growth and energy-transition goals, contributing to the country's Net Zero 2070 vision. By establishing domestic capability and strengthening downstream linkages, the initiative will generate employment and deepen industrial capacity, supporting the vision of Atmanirbhar Bharat. The scheme aims to reduce India's dependence on imports, particularly from China, which has been a major supplier of permanent magnets. This move could enhance India's competitiveness in sectors like electric vehicle motors, wind turbine generators, consumer electronics, aerospace, and defense systems.
