NEW DELHI, November 26, 2025 : In a significant push towards strengthening India’s strategic industrial capabilities, the Union Cabinet on Wednesday approved a ₹7,280-crore scheme aimed at promoting the domestic manufacturing of sintered rare earth permanent magnets, a critical component in high-tech sectors including defence, electronics, renewable energy, and electric mobility.
The new scheme—titled ‘Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets’—was cleared at a Cabinet meeting chaired by Prime Minister Narendra Modi.
India Aims for 6,000 MTPA Magnet Production Capacity
Briefing the media after the meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the scheme is designed to expand India’s manufacturing capabilities in a sector dominated globally by a handful of countries.
“The scheme will promote manufacturing of rare earth permanent magnets. The aim is to create a domestic capacity of 6,000 metric tonnes per annum (MTPA),” Vaishnaw stated.
Strategic Importance of Rare Earth Magnets
Rare earth permanent magnets—especially neodymium-iron-boron (NdFeB) magnets—are essential for:
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Electric vehicle motors
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Wind turbines
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Smartphones and electronics
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Missiles, radars, and defence applications
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Aerospace and robotics
India currently relies heavily on imports for these high-value components, making domestic production a key strategic priority.
Key Features of the Scheme
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₹7,280 crore outlay to support production, scale-up, and technological capability.
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Encourages private-sector investment alongside public-sector participation.
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Focus on creating an end-to-end value chain, reducing dependence on foreign suppliers.
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Supports R&D for high-grade magnets used in advanced applications.
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Likely to generate significant employment across the manufacturing ecosystem.
Strengthening India’s Strategic Autonomy
The move comes amid global supply chain uncertainties and rising demand for rare earth-based components. By building domestic capacity, India aims to:
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Reduce import dependency
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Enhance technological sovereignty
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Support industrial growth under ‘Make in India’
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Expand its role in global high-tech supply chains
