India to Start Domestic Production of Rare Earth Magnets Soon, Says Minister Kumaraswamy

Quick Summary

• Union Minister for Heavy Industries, H. D. Kumaraswamy, confirmed that a subsidy scheme to boost domestic production of rare earth magnets is under active consideration by teh government.
• The decision on the scheme is expected within 15-20 days; stakeholder consultations are ongoing to finalize the incentive structure.
• Kamran Rizvi, secretary at the Ministry of Heavy Industries, noted proposals could exceed ₹1,000 crore and require Union Cabinet approval.
• One Hyderabad-based company has committed to deliver 500 tonnes of rare earth magnets by December 2025 and is actively engaged in discussions with stakeholders.
• Media reports suggest India might introduce a subsidy program worth ₹3,500-₹5,000 crore targeting production incentives for rare earth elements and derived magnets.
• India’s move aligns with global competition for rare earth resources necessary for electric vehicles (EVs),defense equipment,and clean energy technologies.
• China currently holds dominant control over global refining capacity (90%) while producing 60% of total rare earth elements.

Indian Opinion Analysis

India’s proactive steps toward encouraging domestic production of rare earth magnets signify a critical turn in strengthening its strategic autonomy over key inputs like EV manufacturing components and defense technology. With China controlling a notable portion of global refinement capacities for these materials-recently halting exports-India faces mounting urgency to reduce dependency on external suppliers.

The proposed subsidy scheme reflects India’s commitment not only to bolstering industrial innovation but also staying competitive amidst worldwide efforts focused on securing critical minerals. Stakeholder consultations must achieve balanced outcomes between incentivizing local players appropriately without excessive fiscal strain on public finances. If accomplished in accelerating manufacturing through this policy framework, India could invite sustained industrial investments while reinforcing its position as an emerging player in advanced electronics production-a necessity given intensified climate goals relying heavily on clean energy tech advancements.

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