India To Offer Incentives For Local Rare Earth Magnet Production

(MENAFN- KNN India) New Delhi, Sep 12 (KNN) The Indian government is planning to introduce fiscal incentives to promote the domestic production of rare earth magnets, aiming to reduce its dependence on imports from China.

Union Heavy Industries and Steel Minister H. D. Kumaraswamy announced that a scheme is being prepared to support manufacturers through both capital investment subsidies and operational cost support.

Rare earth magnets, especially Neodymium-iron-boron (NdFeB) types, are critical for electric vehicle (EV) motors, power steering systems, and various other automotive components.

China currently dominates the global supply of these magnets, and its recent export restrictions have disrupted several industries worldwide. This has prompted India to fast-track efforts to build a self-reliant supply chain.

Speaking at the annual meeting of the Automotive Component Manufacturers Association of India (ACMA), Kumaraswamy said the government's proposed scheme will cover both fixed asset creation (such as plants and machinery) and operational expenses.

This support will help Indian manufacturers overcome cost disadvantages and compete globally.

Reports suggest that the government is considering a Rs 1,345-crore program to attract at least two private manufacturers to set up facilities for converting rare earth oxides into finished magnets.

At present, Indian Rare Earths Limited-under the Department of Atomic Energy-is the only organisation involved in rare earth processing on a significant scale within the country.

By encouraging local production, the government hopes to reduce India's exposure to global supply chain disruptions, support the rapidly growing EV sector, and enhance the country's role in the global automotive value chain.

This move aligns with India's broader goal of promoting advanced manufacturing and reducing import dependence in strategic industries.

(KNN Bureau)

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