By A Correspondent
New Delhi: India, on November 26, 2025, approved a landmark INR 7,280-crore scheme to kickstart India’s first integrated manufacturing ecosystem for sintered Rare Earth Permanent Magnets (REPM), a critical input for electric vehicles, renewable energy systems, aerospace platforms, and advanced defence technologies.
The move, approved by the Indian Cabinet headed by Prime Minister Narendra Modi, marks a major step in reducing India’s import dependence and positioning the country as a competitive global supplier in a sector dominated by just a few nations.
The Cabinet cleared the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, which aims to establish 6,000 metric tonnes per annum (MTPA) of domestic REPM production capacity.
The initiative directly supports the government’s Atmanirbhar Bharat (Self-Reliant India) mission and aligns with India’s long-term Net Zero 2070 commitments by strengthening the clean-energy supply chain.
REPMs, known to be among the strongest permanent magnets, are indispensable for EV motors, wind turbines, precision electronics, and strategic defence systems.
Despite rapidly growing demand, India currently imports nearly all its REPM requirements. Consumption is projected to double by 2030, driven by the accelerating shift toward electric mobility and renewable power.
The new scheme includes INR 6,450 crore in sales-linked incentives over five years and INR 750 crore as capital subsidy for setting up manufacturing lines covering the entire value chain, from rare-earth oxides to metals, alloys, and final magnet production.
The government will select up to five global or domestic beneficiaries through competitive bidding, with each eligible for a maximum capacity allotment of 1,200 MTPA. The scheme will run for seven years, including a two-year gestation period for establishing facilities.
By enabling India’s first full-stack REPM production capability, the initiative is expected to boost advanced manufacturing, create high-skill jobs, reduce strategic vulnerabilities, and elevate India’s role in global clean-energy and defence supply chains, an important milestone toward the vision of Viksit Bharat 2047.
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