New Delhi: In a strategic push to reduce India’s reliance on China for critical minerals, the Union Cabinet on Wednesday greenlit a ₹7,280 crore scheme to promote the domestic manufacturing of rare earth permanent magnets.
The ambitious initiative, aimed at bolstering self-reliance in high-tech industries, is set to position India as a global leader in clean energy and advanced technology.
The scheme, approved under the National Mineral Mission, will incentivise the production of neodymium-iron-boron (NdFeB) magnets, vital for electric vehicles, wind turbines, and defence equipment.
With China controlling over 80% of the global rare earth supply, India’s move addresses supply chain vulnerabilities exposed during recent geopolitical tensions. The plan includes subsidies for setting up manufacturing units, technology transfers, and research to enhance extraction and processing of rare earth elements like neodymium and dysprosium.
Union Minister for Mines G Kishan Reddy hailed the decision as a “game-changer”, projecting the creation of 12,000 jobs and a ₹50,000 crore market by 2035. The scheme will also support recycling of rare earth materials, aligning with India’s sustainability goals. We expect significant benefits for states like Odisha and Andhra Pradesh, rich in rare earth deposits.
Industry experts welcomed the move but urged robust implementation to counter China’s dominance. As India accelerates its clean energy transition, this initiative marks a bold step toward technological sovereignty and economic resilience.