India has launched a bold and strategically important mission to secure its future in clean energy, electric mobility, electronics, and national security. With the Union Cabinet approving a ₹7,280 crore scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM), the nation has entered a crucial new chapter of self-reliance. The decision, chaired by Prime Minister Narendra Modi, signals India’s intent to reduce dependence on imports, strengthen critical supply chains, and become a global force in a highly strategic industry that powers the technologies of tomorrow.

A First-of-its-Kind National Mission

The government described the initiative as “first-of-its-kind,” reflecting the scale and seriousness with which India is entering the global rare earth magnets market. REPMs are essential components in electric vehicles, renewable energy systems, robotics, aerospace applications, and advanced electronics. Minister of Information and Broadcasting Ashwini Vaishnaw said the scheme has been designed along the lines of the semiconductor mission, signalling a whole-of-government approach to building industries that shape global technology. With India’s current demand for rare earth magnets standing at 4,000–5,000 tonnes annually, the new mission aims to eliminate reliance on imports within the next three to four years.

Why Rare Earth Magnets Matter to India’s Future

Rare earth permanent magnets are fundamental to the working of electric motors, wind turbines, high-efficiency industrial machinery, drones, satellites, and advanced defence equipment. Experts describe them as “the silent engines” of modern technology. Despite having one of the world’s largest rare earth reserves at 6.9 million tonnes, India has been dependent on foreign suppliers for finished magnets. This has long been a strategic vulnerability, especially as global geopolitics increasingly revolve around critical minerals. In recent years, rare earths have been at the center of trade tensions between major powers, underlining their importance. The new scheme ensures India will no longer be at the mercy of global supply disruptions.

What the Scheme Offers

The ₹7,280 crore package includes a capital subsidy of ₹750 crore for five selected participants and ₹6,450 crore as sales-linked incentives over five years. The total scheme duration is seven years, including a two-year gestation period for setting up integrated manufacturing facilities and five years of incentive disbursal. The government will allot a total manufacturing capacity of 6,000 MTPA to five beneficiaries, each receiving up to 1,200 MTPA. The selection will be done through global competitive bidding, ensuring transparency and quality. Both public and private players—especially those in electronics, automobiles, and steel—are expected to participate. Companies will have full freedom to choose their manufacturing locations.

A Boost for Clean Mobility and Energy Security

One of the biggest impacts of the scheme will be seen in India’s electric vehicle transition. Electric drivetrains rely heavily on rare earth magnets, and having a strong domestic supply will reduce manufacturing costs, promote localization, and strengthen the EV ecosystem. This move aligns with India’s commitment to reduce crude oil imports and enhance energy security. It also supports the nation’s long-term objective of achieving net-zero emissions by 2070. From EV motors to wind turbines, India will now be able to manufacture critical components domestically, making its clean energy shift more resilient and affordable. Rare earth magnets are vital to defence applications such as missiles, radars, drones, precision-guided systems, and aerospace technologies. Until now, India’s dependence on imported magnets posed a strategic risk. By building its own REPM ecosystem, India strengthens its national security and ensures an uninterrupted supply for critical systems. 

Economic Growth, Jobs and Industrial Transformation

The mission will generate thousands of high-skilled jobs in manufacturing, engineering, metallurgy, mining, and research. It will also create opportunities for MSMEs, component suppliers, and tech startups working on EVs, robotics, electronics, and renewable energy. By establishing India’s first integrated REPM manufacturing facilities, the scheme empowers the entire value chain—from mining to advanced component production, leading to long-term industrial growth.

A New Era Begins

The approval of the ₹7,280 crore rare earth magnet scheme is not just a policy decision; it is a turning point for India’s technological, economic, and strategic future. It strengthens the nation’s self-reliance, fuels the clean energy transition, protects national security and unlocks opportunities for millions. With disciplined implementation, robust technology acquisition, and responsible mining, India is on track to become a global powerhouse in one of the world’s most critical industries. This marks the beginning of a new era, one where India builds the future with its own hands.