In a major step toward strategic self-reliance, the Union Cabinet of India \u2014 chaired by Narendra Modi \u2014 on 26 November 2025 approved a new flagship initiative: the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets. Under this plan, the government will invest \u20b97,280 crore<\/strong> to build a fully integrated domestic manufacturing ecosystem for permanent rare-earth magnets (REPMs). Press Information Bureau<\/span>+2<\/span><\/span>Business Standard<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n The aim is to create a production capacity of 6,000 metric tonnes per annum (MTPA)<\/strong> of sintered REPMs in India \u2014 a first-of-its-kind domestic supply chain. Business Standard<\/span>+2<\/span><\/span>PM India<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n The manufacturing will be \u201cintegrated\u201d: starting from rare-earth oxides \u279c processed metals \u279c alloys \u279c and finally sintered permanent magnets, all under one roof. Press Information Bureau<\/span>+2<\/span><\/span>Business Standard<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n To build this capacity, the scheme includes \u20b96,450 crore as sales-linked incentives<\/strong> over five years, plus \u20b9750 crore as capital subsidy<\/strong> for setting up the manufacturing units. mint<\/span>+2<\/span><\/span>The Financial Express<\/span>+2<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n The plan envisions five manufacturing units<\/strong>, each potentially producing up to 1,200 MTPA<\/strong>, selected through a global competitive bidding process. The Economic Times<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n The total duration of the scheme is seven years<\/strong>: a two-year gestation period for setup, followed by five years of incentive-linked production. Business Standard<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n Rare-earth permanent magnets are among the strongest known magnets and are indispensable for a wide range of high-tech and strategic sectors, including:<\/p>\n Electric vehicles \u2014 powering motors and drivetrains Business Standard<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Renewable energy \u2014 especially wind turbines and clean-energy systems requiring high-efficiency motors\/generators Business Standard<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Electronics \u2014 in devices needing compact, powerful magnets for efficiency and miniaturization Press Information Bureau<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Aerospace and defence \u2014 for specialized motors, sensors, actuators, and other critical systems where performance and reliability are key. Press Information Bureau<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n Currently, most of India\u2019s REPM requirements are met through imports \u2014 especially from countries dominating the global rare-earth supply chain. This scheme aims to drastically cut that dependence. Press Information Bureau<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n Self-reliance & Atmanirbhar Bharat<\/strong>: The scheme aligns with the broader national vision of reducing import dependence and building indigenous capacities in critical technologies. Press Information Bureau<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Supply chain security<\/strong>: Given global volatility in critical-minerals supply (notably rare-earth elements), having domestic REPM manufacturing will insulate India from external shocks and export curbs from other countries. The Economic Times<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Support to future-tech & green transition<\/strong>: With rising EV adoption and push for renewable energy, domestic REPM capacity ensures that India can meet future demand sustainably while advancing its climate and energy-transition goals. PM India<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n Economic & industrial growth<\/strong>: The scheme is expected to generate jobs, strengthen the industrial base, and spur growth in high-tech manufacturing sectors. Press Information Bureau<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n<\/li>\n<\/ul>\n Industry stakeholders have welcomed the move. Leaders from the automotive sector \u2014 a major REPM consumer due to EVs \u2014 hailed this as a \u201csignificant step\u201d toward resilient and stable supply chains for electrified vehicles. MotownIndia.com<\/span>+1<\/span><\/span><\/span><\/a><\/span><\/span><\/p>\n\ud83d\udd27 What the Scheme Entails<\/h3>\n
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\u2699\ufe0f Why REPMs Matter \u2014 The Strategic Importance<\/h3>\n
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\ud83c\udfaf Strategic Goals Behind the Move<\/h3>\n
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\ud83d\udcf0 Reaction & Industry Response<\/h3>\n