What is India's Rare Earth Permanent Magnets (REPM) scheme?

India's REPM scheme is a strategic initiative with a ₹7,280 crore outlay approved by the Union Cabinet to promote indigenous manufacturing of sintered rare earth permanent magnets.

Why is India focusing on domestic manufacturing of rare earth magnets?

The focus is to reduce import dependence, strengthen domestic capabilities in high-technology sectors, and support the growth of electric mobility, wind turbines, and defense systems.

What financial incentives are being provided to boost manufacturing?

The government is offering exemption from basic customs duty on capital goods used for critical minerals manufacturing and has approved ₹2,000 crore for setting up over 70,000 charging stations nationwide.

Home / Business and Economy / India Bets Big on Domestic Rare Earth Magnets for EVs

India Bets Big on Domestic Rare Earth Magnets for EVs

10 Feb

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Summary

India approves ₹7,280 crore scheme for rare earth permanent magnets.
Sintered rare earth magnets are crucial for EVs, wind turbines, and defense.
Government offers customs duty exemption to boost critical minerals manufacturing.

India Bets Big on Domestic Rare Earth Magnets for EVs

India is embarking on a significant push to indigenize the production of sintered rare earth permanent magnets, critical components for electric vehicles (EVs) and other advanced technologies. This strategic move aims to deepen the country's clean manufacturing ecosystem and reduce reliance on imports.

The Union Cabinet has greenlit the Rare Earth Permanent Magnets (REPM) scheme, backed by an outlay of ₹7,280 crore. This initiative is designed to bolster domestic capabilities in high-technology sectors crucial for clean energy and mobility.

Further supporting domestic manufacturing, recent budget measures include exemption from basic customs duty for capital goods used in critical minerals production. Industrial corridors are also being developed in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh to foster integrated ecosystems for component manufacturing and downstream applications.