In a landmark move to strengthen India’s high-tech manufacturing ecosystem, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a first-of-its-kind scheme to establish the country’s maiden integrated manufacturing ecosystem for Sintered Rare Earth Permanent Magnets (REPMs). These magnets are critical components in electric vehicles, wind turbines, aerospace systems, defence platforms, consumer electronics, and a wide range of green technologies.
With a total financial outlay of ₹7,280 crore, the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets” aims to develop domestic capacities, reduce import dependence, and position India as a significant global player in the rapidly expanding REPM market.
A Major Leap in Strategic Manufacturing
REPMs, known for being among the strongest permanent magnets, are indispensable for next-generation technologies. India’s consumption of these magnets is poised to double by 2030, driven by the accelerating adoption of electric mobility, renewable energy systems, industrial automation, and advanced electronics.
Currently, the country depends heavily on imports to meet its REPM needs. The new scheme aims to change that by setting up an integrated supply chain right from converting rare earth oxides to metals, processing the metals into alloys, and ultimately manufacturing finished magnets.
Key Highlights of the Scheme
₹7,280 crore financial outlay
– ₹6,450 crore as sales-linked incentives for five years
– ₹750 crore as capital subsidy for establishing manufacturing facilities
Total manufacturing capacity: 6,000 MTPA of REPMs to be created within the country.
Five beneficiaries will be selected through a global competitive bidding process, each allotted up to 1,200 MTPA capacity.
Scheme duration: 7 years, including:
– 2 years for establishment of integrated manufacturing units
– 5 years for incentive disbursement based on sales
Boosting Self-Reliance & Green Tech
The scheme aligns closely with India’s strategic priorities:
Strengthening self-reliance (Aatmanirbharta) in critical materials
Enhancing capabilities in sectors such as EVs, renewable energy, defence, and aerospace
Building resilient supply chains for high-tech industries
Supporting India’s Net Zero 2070 commitments through greener, locally manufactured components
By fostering end-to-end domestic production of REPMs a domain dominated globally by a few players India seeks to secure its position in the global clean-tech and advanced-manufacturing landscape.
Towards Viksit Bharat @2047
The initiative is expected to generate significant employment opportunities, attract global investment, and strengthen India’s standing in emerging tech supply chains. More importantly, it reinforces the government’s long-term vision of building a technologically advanced, globally competitive, and sustainable industrial base.
With this historic approval, India begins a new chapter in rare earth magnet manufacturing, a step that promises to reshape its industrial future and power its journey towards Viksit Bharat @2047.
