India Approves ₹7,280 Crore Scheme for Sintered Rare Earth Permanent Magnets Manufacturing
India's Union Cabinet has approved a ₹7,280-crore scheme to establish the country's first integrated manufacturing ecosystem for sintered Rare Earth Permanent Magnets, aiming for a production capacity of 6,000 metric tonnes per annum. The initiative seeks to reduce import dependence and support sectors like electric vehicles and renewable energy, with significant incentives and subsidies allocated over seven years. Additionally, the US Defense Security Cooperation Agency recently approved military sales to India, further enhancing its defense capabilities.
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On November 26, 2025, India's Union Cabinet approved a ₹7,280-crore scheme to establish the country’s first integrated manufacturing ecosystem for sintered Rare Earth Permanent Magnets (REPM). This initiative aims to create a domestic production capacity of 6,000 metric tonnes per annum to reduce import dependence and support sectors like electric vehicles and renewable energy.
The scheme includes ₹6,450 crore in sales-linked incentives over five years and ₹750 crore for capital subsidies. Key beneficiaries may include Hindustan Zinc and Gujarat Mineral Development Corporation, with a global bidding process for five domestic or global players.
The total duration of the scheme is seven years, consisting of a two-year setup period and five years for incentive disbursement. Additionally, on November 19, 2025, the US Defense Security Cooperation Agency approved military sales to India, including Excalibur artillery shells and Javelin missiles, worth over $92 million, enhancing India's military capabilities.
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