₹7,280cr boost to make rare earth magnets in India
India just rolled out a ₹7,280 crore plan to ramp up local production of rare earth magnets—the components that power everything from electric vehicles to smartphones.
The scheme offers up to ₹2,150 per kg as incentives for making Neodymium Iron Boron (NdFeB) magnets, plus extra perks like sales-linked incentives and capital subsidies.
How the scheme works
Both Indian and foreign companies can apply if they meet certain investment and net worth requirements.
There's a mix of sales-linked incentives (₹645-1,290 crore) and capital subsidies (₹75-150 crore) on offer.
Companies will need to submit detailed project plans for review, and the government will also supply key raw materials to help kickstart local production—making India less dependent on imports for these critical tech components.