India took a decisive step towards strengthening its strategic manufacturing base as the Union Minister for Heavy Industries and Steel chaired a high-level stakeholder consultation on the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets. The consultation brought together senior officials from key ministries, heads of public sector enterprises, and industry representatives from India and overseas to deliberate on building a robust domestic ecosystem for rare earth permanent magnets.
Addressing the meeting, the Minister underscored that the scheme marks a pivotal milestone in India’s journey towards self-reliance in critical materials and advanced manufacturing. He said the initiative is aligned with the national vision of Viksit Bharat 2047 and aims to create a resilient, globally competitive value chain for rare earth permanent magnets, which are essential components in electric vehicles, renewable energy systems, electronics, defence applications and advanced industrial equipment.
The Minister urged eligible domestic and international manufacturers to actively participate in the upcoming bidding process and contribute to India’s long-term industrial growth. He informed stakeholders that the Ministry of Heavy Industries is in the process of finalising the Request for Proposal, signalling the government’s intent to move swiftly from policy announcement to implementation.
Officials from the Ministry of Heavy Industries outlined the structure and objectives of the scheme, which was notified on 15 December 2025. The scheme carries a total financial outlay of 7,280 crore rupees, comprising 6,450 crore rupees in sales-linked incentives on the manufacture and sale of sintered rare earth permanent magnets and 750 crore rupees as capital subsidy. The incentives are designed to support the establishment of integrated manufacturing facilities with an aggregate capacity of 6,000 metric tonnes per annum, significantly reducing India’s dependence on imports in this strategically sensitive segment.
The scheme is structured over a seven-year period, including a two-year gestation phase for setting up manufacturing facilities, followed by five years of incentive disbursement linked to actual sales performance. This design aims to encourage timely capacity creation while ensuring sustained production and market competitiveness.
Senior representatives from the Department of Atomic Energy, IREL India Limited, NMDC and NFTDC participated in the deliberations, reflecting the integrated approach being adopted to secure raw material availability, processing capability and downstream manufacturing. Industry participants shared details of their technological capabilities, investment plans and interest in participating under the scheme, indicating strong market response and readiness to engage with the initiative.
The consultation highlighted the importance of close coordination between policymakers, public sector institutions and private industry to address challenges across the value chain, including access to rare earth resources, technology acquisition, scale-up of manufacturing and integration with global supply chains.
The stakeholder engagement reaffirmed the government’s commitment to fostering collaboration-driven industrial policy to accelerate technological self-sufficiency. By promoting domestic manufacturing of sintered rare earth permanent magnets, India aims to position itself as a credible global player in critical materials while supporting strategic sectors central to the country’s economic growth, energy transition and national security objectives.
