India has approved a massive ₹72.8 billion ($815.74 million) programme to manufacture rare earth permanent magnets domestically, marking a major strategic step toward reducing its reliance on imports. The announcement was made by Information Minister Ashwini Vaishnaw following a cabinet meeting on Thursday.
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The government stated that demand for rare earth permanent magnets—among the strongest types used in modern technology—is rising rapidly, driven by sectors such as electric vehicles, aerospace, defence, and renewable energy. India expects its consumption to double by 2030, yet currently depends almost entirely on foreign suppliers to meet these requirements.
BIG: Cabinet approves ₹7,280 crore scheme to boost domestic manufacturing of rare-earth permanent magnets, supporting the auto, defence and aerospace sectors. pic.twitter.com/eMxoVhLSPg
— Beats in Brief ️ (@beatsinbrief) November 26, 2025
According to official data, the country imported 53,748 metric tons of rare earth magnets in the fiscal year ending March 2025. Vaishnaw said that once the new programme is fully implemented, India’s reliance on imports will “practically reduce to zero,” helping secure the supply chain for critical industries.
The Ministry of Heavy Industries said the programme aims to boost self-reliance by supporting the creation of manufacturing plants with a combined capacity of 6,000 metric tons per year. These facilities will be established under a global competitive bidding process designed to attract strong industrial players.
HUGE. Cabinet clears a ₹7,280 crore push to make India a RARE-EARTH powerhouse
~ The plan will build 6,000 MTPA integrated RE permanent-magnet manufacturing, a first for India, with a 7-year rollout.Another strategic leap to cut China’s grip pic.twitter.com/k7X1lSh9cD
— The Analyzer (News Updates️) (@Indian_Analyzer) November 26, 2025
Under the scheme, capacity will be distributed among five selected beneficiaries, each allowed to set up units producing up to 1,200 metric tons annually. The initiative is expected to pave the way for advanced manufacturing, high-tech innovation, and greater economic resilience.
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Officials say the move also aligns with India’s broader goal of strengthening domestic production in strategically important sectors. By developing its rare earth magnet manufacturing base, the country aims to safeguard national security interests, support industrial growth, and expand its footprint in global technology supply chains.