In a significant move to boost India’s self-reliance in a critical technology sector the Union Cabinet has greenlit a major scheme to manufacture rare earth permanent magnets. With a substantial financial outlay of ₹7,280 crore this initiative approved in a meeting led by Prime Minister Narendra Modi, aims to build a robust domestic supply chain for these powerful components. Announced by Information and Broadcasting Minister Ashwini Vaishnaw, the plan is to establish a manufacturing capacity of 6,000 metric tonnes per year.
These aren’t ordinary magnets; they are the super-powered engines behind some of today’s most vital industries. If you drive an electric vehicle use advanced electronics, or benefit from modern medical devices like MRI machines you are relying on rare earth magnets. Their importance extends to the high-tech realms of aerospace and national defence, making them a cornerstone of both modern life and national security.
The government’s strategy is to distribute this new production capacity wisely. Through a transparent, global competitive bidding process the total capacity will be allocated to five selected companies. Each of these beneficiaries will be able to produce up to 1,200 metric tonnes annually. The entire scheme is structured for a seven-year period. This includes a two-year window for companies to build their integrated manufacturing plants from the ground up followed by five years where they will receive financial incentives based on their sales ensuring the long-term viability of this strategic industry. This forward-thinking policy is a clear step towards positioning India as a key player in the global advanced manufacturing landscape.