India's rare-earth magnet fix: What's happening?

Business Jan 09, 2026

India is taking big steps to secure its supply of rare-earth magnets—essential for making electric vehicles—since China currently dominates the market.
To cut down on imports and boost local production, the government has rolled out a ₹7,280 crore plan aimed at making India more self-reliant in this key tech area.

How the plan works (and why it matters)

The new scheme, approved in November 2025, offers major sales incentives and subsidies over seven years to encourage homegrown manufacturing.
The target is to produce 6,000 metric tons per year by 2030, which could cover up to 75% of what India needs.
Private companies are also stepping up to find alternative sources and keep things running smoothly for the country's EV push.