India Plans Subsidies for Rare Earth Magnet Production

India is planning a ₹1,345-crore ($156 million) subsidy scheme aimed at incentivizing domestic production of rare earth magnets, reducing reliance on China amid tightened Chinese export controls. The proposal, currently under inter-ministerial review, would initially support two manufacturers processing rare earths from oxides to finished magnets, with government entities like India Rare Earth Limited expected to participate. This policy response follows supply disruptions affecting critical industries such as automobiles, electronics, and defense. Industry leaders continue to urge the government to adopt a comprehensive national strategy on critical materials. With the world's third-largest rare earth reserves, India also aims to participate in international initiatives like the Quad Critical Minerals Initiative. The move is expected to boost domestic capacity, attract private investment, and strengthen India's position in high-tech sectors.