New Delhi [India], November 26 : The Union Cabinet is likely to clear on Wednesday, a Rs 7,000-crore incentive scheme aimed at boosting domestic manufacturing of rare earth magnets, sources told ANI.
The proposal, designed with a validity of seven years, seeks to reduce India's import dependence on critical minerals and strengthen the supply chain for advanced manufacturing sectors.
The scheme is expected to support the creation of production capacity for nearly 6,000 tonnes of rare earth magnets. These magnets are essential components in electric vehicles, electronics, wind turbines, defence platforms, and other high-technology applications.
Sources further indicated that the Finance Ministry has already granted approval for the scheme, paving the way for the ongoing Cabinet meeting, which started today at 12:30 pm, to take up the proposal.
The Ministry of Mines has been working on the scheme framework with a focus on attracting global and domestic firms, promoting value addition within India, and ensuring long-term availability of strategic materials.
India currently relies heavily on imports of rare-earth permanent magnets, primarily from China. The proposed incentive mechanism is expected to support investment in processing, refining, and magnet-making capabilities, which remain underdeveloped in the country.
Sources said the scheme aligns with the government's broader agenda of securing critical mineral supply chains and enhancing technological self-reliance across sunrise sectors. The Cabinet's approval is anticipated shortly.
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