Centre clears 1st rare-earth magnet unit in ₹7,100cr electronics push
What's the story
The Indian government has approved 29 projects worth ₹7,104 crore under the Electronics Component Manufacturing Scheme (ECMS). Among these is India's first rare earth permanent magnet manufacturing unit, which will be set up with an investment of ₹700 crore. The project is notable for its fully indigenous technology and intellectual property, as per Electronics and IT Minister Ashwini Vaishnaw.
Project diversity
ECMS projects span 16 electronics segments
The approved projects cover 16 product segments, including lithium-ion cells, flexible PCBs, connectors, and display modules. They are distributed across eight states in India, with Karnataka and Maharashtra leading in the number of projects. The investments from these projects are expected to create over 14,000 jobs and generate production worth ₹84,515 crore.
Strategic importance
Domestic production could meet 25% of rare earth magnet demand
Vaishnaw said that the government considers the rare earth magnet unit as a major step toward building capabilities across the refined mineral-to-magnet value chain. This is an area where global supply is still heavily concentrated. The minister also noted that domestic production could meet 25% of rare earth magnet demand, with localization targets of 50% for PCBs and 61% for lithium-ion batteries.