₹7,280 Crore Rare Earth Magnet Scheme Advances as Centre Prepares RfP to Strengthen Strategic Manufacturing – EQ
In Short : India’s ₹7,280 crore rare earth magnet manufacturing scheme has moved closer to implementation as the Centre prepares to issue a Request for Proposal. The initiative aims to build domestic capabilities in critical materials, reduce import dependence, support clean energy and electric mobility sectors, and strengthen India’s strategic and industrial resilience in key future technologies.
In Detail : The Centre has taken a significant step toward strengthening India’s critical materials ecosystem as preparations begin to issue a Request for Proposal for the ₹7,280 crore rare earth magnet manufacturing scheme. The move signals growing urgency to develop domestic capacity in materials that are vital to clean energy, defence, and advanced manufacturing.
Rare earth magnets play a crucial role in technologies such as electric vehicles, wind turbines, consumer electronics, and defence equipment. Currently, global supply chains for these materials are highly concentrated, making countries vulnerable to disruptions and geopolitical risks.
The proposed scheme is designed to encourage private sector participation in setting up manufacturing facilities across the rare earth magnet value chain. By offering targeted financial support, the government aims to attract investments and accelerate the development of indigenous production capabilities.
Issuing the RfP will mark the transition of the scheme from policy intent to execution. It is expected to outline eligibility criteria, incentive structures, timelines, and technical requirements, providing clarity to prospective investors and manufacturers.
The initiative aligns closely with India’s broader clean energy and electric mobility ambitions. As the country scales up renewable energy capacity and EV adoption, demand for high-performance magnets is expected to rise sharply, making domestic supply increasingly critical.
Beyond clean energy, rare earth magnets are essential for strategic sectors such as aerospace, electronics, and defence manufacturing. Building local capacity will enhance national security while supporting the development of high-value manufacturing industries.
The scheme is also expected to generate significant economic benefits, including job creation, technology transfer, and the development of specialised skills. It may encourage the growth of ancillary industries and research capabilities around advanced materials.
From a policy perspective, the initiative reflects India’s focus on reducing import dependence and strengthening supply chain resilience. Developing domestic capabilities in critical minerals and components is increasingly viewed as a cornerstone of long-term industrial competitiveness.
The rare earth magnet scheme is likely to complement other manufacturing and clean energy initiatives aimed at building a self-reliant industrial base. Coordinated implementation across ministries and industry stakeholders will be key to its success.
Overall, the move to issue an RfP for the ₹7,280 crore rare earth magnet scheme represents a strategic milestone. It underscores India’s intent to secure its position in future-facing technologies while supporting sustainable growth, energy transition, and industrial self-reliance.
