New Delhi, November 28, 2025:
In a major push to secure India’s clean-tech supply chains, the Union Cabinet headed by Prime Minister Narendra Modi has approved a ₹7,280 crore Production-Linked Incentive (PLI) scheme to scale domestic manufacturing of sintered rare earth permanent magnets (REPM)—critical components for electric vehicles, wind turbines, and advanced electronics.
The scheme aims to position India as a global magnet manufacturing hub, targeting 20% of the world’s REPM market by 2030, and reducing dependence on China, which currently commands nearly 90% of global rare earth magnet production.
Union Minister for Heavy Industries H.D. Kumaraswamy said the incentives would support creation of 10 GWh manufacturing capacity and generate over 5,000 direct jobs. Leading industrial players—including Tata Steel and emerging advanced materials companies—are expected to participate.
The initiative is projected to cut rare earth magnet imports by $10 billion over the next decade while powering India’s expanding EV ecosystem and 500 GW renewable energy goals. Production under the scheme will also support defense, robotics, space applications, and high-efficiency motors.
Experts such as former DIPP Secretary Ajay Shankar estimate potential annual exports of up to $5 billion by 2030, calling the move essential to India’s $500 billion green energy transition roadmap.
The approval marks one of India’s most significant steps toward securing strategic minerals, strengthening the “Make in India” mission, and insulating high-tech industries from global supply chain disruptions.
