India’s Rare Earth Magnet Plan Boosts Local Production
India has approved an $816 million rare earth magnet programme to strengthen local production. The goal is to reduce the country’s heavy reliance on imported magnets. The new plan supports key sectors such as electric vehicles, aerospace, defence, and renewable energy.
Demand for rare earth magnets continues to rise. The government expects consumption to double by 2030. However, India still depends on imports to meet most of its needs.
In the fiscal year ending March 2025, India imported 53,748 metric tons of these magnets. This created pressure on supply chains. It also increased costs for industries that rely on these essential materials.
Growing Self Reliance
Information Minister Ashwini Vaishnaw shared the government’s vision after a cabinet meeting. He said India currently imports all permanent magnets. However, he added that this programme will change the situation. As a result, India aims to reduce import dependence to almost zero.
The new plan supports local production by creating manufacturing facilities with a combined annual capacity of 6,000 metric tons. The Heavy Industries Ministry said these facilities will help build a stronger industrial ecosystem. In addition, they will open new opportunities for businesses and workers.
The government will select five companies to run these facilities. Each company can receive an allocation of up to 1,200 metric tons per year. The selection will take place through a global bidding process. This approach ensures competition and attracts high quality proposals.
The initiative marks a major shift in India’s industrial strategy. It encourages innovation and long term investment. It also strengthens supply chains for clean energy and advanced technology. As a result, local industries can focus on growth rather than imports.
The programme highlights India’s commitment to sustainable development. It also supports global efforts to secure reliable access to rare earth materials. With this programme, India takes a confident step toward a more secure and self reliant future.
