India to invest ₹7,300cr in rare earth magnet production

Business Oct 08, 2025

India's Finance Ministry has approved a ₹7,300 crore scheme to boost homegrown rare earth magnet production, pending Cabinet approval, aiming for 6,000 metric tons a year by 2030.
At least five companies will get support, each able to make 1,200 tons annually—helping India rely less on China for these crucial components.

Why rare earth magnets matter

Rare earth magnets power everything from EVs and wind turbines to defense gear and electronics.
Right now, India imports over 80% of these magnets from China, which tightened export rules in April 2024.
This new scheme is India's way of securing its own supply chain and building self-reliance in critical minerals—so the country's tech and green industries aren't left hanging if global tensions rise.