Government’s Push for Critical-Mineral Autonomy: ₹7,280 Crore Scheme for Rare Earth Permanent Magnets (REPMs)

In a major step toward strengthening India’s strategic mineral capabilities, the Union Cabinet has approved a ₹7,280 crore incentive scheme to promote domestic manufacturing of sintered Rare Earth Permanent Magnets (REPMs). Announced on 26/27 November, the scheme targets the creation of a manufacturing capacity of around 6,000 MTPA, signalling a decisive move to secure India’s position in the global clean-tech and defence value chains.
Source: PendulumEdu

Rare Earth Permanent Magnets are indispensable components in high-technology industries. They power electric vehicle motors, wind turbines, drones, satellites, precision-guided defence systems, medical devices, and advanced electronics. Currently, India is heavily dependent on imports — especially from China — for these specialised magnets and the processing of rare-earth elements. This dependence creates vulnerabilities in supply chains, exposes India to geopolitical disruptions, and constrains domestic industrial expansion in critical sectors.

Strategic and Economic Significance

The new scheme aligns with India’s broader objective of achieving “tech sovereignty”, reducing import reliance, and building a competitive ecosystem in critical minerals and advanced manufacturing. The incentives aim to attract global and domestic investors, promote technological collaborations, and encourage R&D in rare-earth separation, purification, and magnet fabrication.

The move will complement India’s energy-transition ambitions by supporting the scaling of EV adoption, expansion of renewable energy capacity — particularly wind energy — and growth in domestic manufacturing under Make in India. It also strengthens the defence industrial base by ensuring supply-chain continuity for strategic components.