The Union Cabinet has approved a Rs 72.80 billion scheme to promote the manufacturing of sintered Rare Earth Permanent Magnets (REPM) in India, marking the country’s first integrated initiative to develop a domestic REPM ecosystem. The programme aims to establish 6,000 MTPA of manufacturing capacity through facilities covering the entire value chain—from rare earth oxides to finished magnets. The move seeks to strengthen supply chains for sectors such as electric mobility, aerospace, defence, renewable energy and electronics, where REPMs are critical.

India’s magnet consumption is projected to double by 2030, yet the country remains dependent on imports. The scheme includes Rs 64.5 billion in sales-linked incentives over five years and Rs 7.5 billion as capital subsidy to develop an aggregate production capacity of 6,000 MTPA, to be allocated to up to five beneficiaries through global competitive bidding. The seven-year scheme includes a two-year gestation period and five years of incentive disbursal.

The initiative is expected to generate employment, bolster self-reliance and contribute to India’s Net Zero 2070 goals by enabling indigenous magnet manufacturing. The Government stated that the scheme aligns with the vision of Viksit Bharat @2047 and will enhance India's competitiveness in the global REPM market.