India unveils Rs 7,280 crore rare‑earth magnet scheme

New Delhi announces a Rs 7,280 crore programme to build an integrated Sintered Rare Earth Permanent Magnet (REPM) value chain in India, targeting 6,000 metric tons per annum of capacity.\n\nThe scheme combines Rs 6,450 crore of sales‑linked incentives over five years with a Rs 750 crore capital subsidy to support facilities spanning oxides, metals, alloys and finished magnets. Industry group IESA called it a "visionary, first‑of‑its‑kind initiative" that fills a critical gap in high‑technology supply chains.\n\nSecure domestic REPM supply is aimed at cutting import dependence and strengthening semiconductor and electronics manufacturing ecosystems by ensuring access to strategic magnetic materials used in precision motors, automation, fab equipment, power electronics, EV traction systems and 5G/AI hardware. The move is also intended to support rapidly rising demand — expected to double by 2030 — and to make large‑scale REPM production globally competitive to attract both domestic and international manufacturers.\n\nOfficials and industry see the policy as a way to diversify global supply chains, reduce line‑stop risk from external disruptions, and position India as a competitive manufacturing hub for defence, aerospace, renewables, EVs and electronics.