The Government approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets with an outlay of ₹7,280 crore. Its core aim is to build India's first integrated domestic manufacturing ecosystem for high-performance magnets used in electric vehicles, wind turbines, electronics, aerospace and defence equipment. This can strengthen domestic supply chains for critical minerals and energy-transition equipment.
The scheme targets 6,000 metric tonnes per annum of integrated manufacturing capacity. It focuses on developing the full value chain within India, from rare-earth oxides to finished magnets. The capacity is to be allocated among up to 5 beneficiaries through global competitive bidding. The scheme includes ₹6,450 crore as sales-linked incentives and ₹750 crore as capital subsidy. Its total duration is 7 years, comprising a 2-year gestation period for setting up facilities and 5 years for sales-linked incentive disbursement.
Rare earth elements, critical minerals, import dependence, electric mobility and the industrial base for renewable energy can be studied through this scheme. For India, this is not only a manufacturing support scheme; it is an attempt to strengthen domestic availability of inputs on which future clean-energy systems, advanced manufacturing and defence supply chains depend. In prelims, the outlay, capacity, beneficiaries and application sectors can be asked. In mains, it can be used as an example for Atmanirbhar Bharat, industrial policy and strategic supply-chain resilience.