India has taken a major strategic step to secure its critical mineral supply chain by approving a ₹7,000 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets. The initiative aims to reduce import dependence, strengthen industrial self-reliance and support high-growth sectors vital to the country’s long-term economic and strategic goals.
Rare Earth Resource Base in India
India possesses a substantial reserve of rare earth minerals distributed across both coastal and inland regions. These minerals occur in beach sands, red sands and inland alluvium in states such as Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra. These deposits provide the raw material base necessary to support an integrated domestic rare earth ecosystem.
Scheme for Sintered Rare Earth Permanent Magnets
The government-approved “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)” seeks to establish India’s first end-to-end domestic manufacturing ecosystem for high-value magnets. The scheme targets the creation of 6,000 metric tonnes per annum capacity covering the entire value chain—from rare earth oxides to finished permanent magnets. Rare earth oxides form the foundational input for downstream industries, including magnet manufacturing.
Strategic and Industrial Significance
Permanent rare earth magnets are critical components in electric vehicles, wind turbines, electronics, aerospace systems and defence platforms. Currently, India remains heavily dependent on imports, particularly from China, for these materials. The new scheme is expected to strengthen supply chain resilience, support the energy transition and enhance domestic industrial capability while generating employment.
Imporatnt Facts for Exams
Rare earth minerals are essential for clean energy and advanced technologies.
India has rare earth deposits in both coastal sands and inland regions.
Sintered rare earth magnets are used in EVs, wind turbines and defence systems.
Reducing import dependence is a key goal of India’s mineral strategy.
International Partnerships and National Vision
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