India's ₹7,280 Crore Magnet Push Aims to Slash China Imports, Boost Self-Reliance

The scheme with a financial outlay of Rs 7,280 crore also aims to enable long-term industrial growth by establishing 6,000 metric tonnes per annum of integrated REPM manufacturing capacity covering the full chain from rare‑earth oxides to finished magnets, according to an official statement.

The scheme is designed to enhance competitiveness, attract technology‑driven investment and support long‑term scalability while contributing to energy‑transition goals and India's Net Zero 2070 vision, it added.

By establishing domestic capability and strengthening downstream linkages, this Government's initiative will help generate employment, deepen industrial capacity and support the vision of Atmanirbhar Bharat.

The scheme will distribute a total of 6,000 MTPA of domestic manufacturing capacity across five beneficiaries through global competitive bidding, with each eligible for up to 1,200 MTPA.

It includes Rs 6,450 crore as sales‑linked incentives over five years and a Rs 750 crore capital subsidy, and will be implemented over seven years with a two‑year gestation period followed by five years of incentive disbursement, the government said.

Further, the Ministry of Mines has entered into bilateral agreements with mineral-rich countries including Australia, Argentina, Zambia, Peru, Zimbabwe and Mozambique. India also participates in multilateral platforms such as the Minerals Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF) to build resilient critical minerals supply chains.

Official data indicated that India sourced a major share of its permanent magnet imports from China during 2022-23 to 2024-25, with import dependence ranging between 59.6 per cent and 81.3 per cent value-wise and 84.8 per cent and 90.4 per cent quantity-wise.

REPMs are critical for electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace and defence systems, and precision sensors.

- IANS