India's ₹7,280cr push to make EV parts at home
India just announced a ₹7,280 crore plan to boost its electric vehicle (EV) supply chain by making rare earth magnets locally—these are the key parts that help EV motors run smoothly and efficiently.
Why is this a big deal?
Right now, India depends almost entirely on China for these magnets.
The new scheme wants to change that by picking up to five companies through a competitive process and supporting them to set up production here.
The goal: cut import reliance and build tech skills at home.
What's in it for the EV scene?
The government is offering incentives—two years for setup and five years of rewards based on sales—to help companies get going.
If it works, we could see cheaper EVs (maybe 5-15% less), more jobs, and a stronger push toward India's Net Zero 2070 target.
While batteries will still be imported for now, this move is a solid step toward making Indian EVs more self-reliant and globally competitive.