What's Happening?
India has announced a new 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 and
reduce import dependence. The scheme will establish a manufacturing capacity of 6,000 metric tonnes per annum, covering the full chain from rare-earth oxides to finished magnets. It includes sales-linked incentives and a capital subsidy, and will be implemented over seven years. The Ministry of Mines has also entered into agreements with mineral-rich countries to build resilient supply chains.
Why It's Important?
The development of a domestic rare earth manufacturing industry is crucial for India's strategic sectors, including electric vehicles, wind turbines, and defense systems. By reducing reliance on imports, particularly from China, India aims to secure its supply of critical materials necessary for technological and industrial growth. This move aligns with India's broader goals of achieving energy transition and its Net Zero 2070 vision. The scheme is expected to attract technology-driven investments and enhance the country's competitiveness in the global market.
