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India Rushes Rare Earths: GMDC Surges on $7.2B Cabinet Boost
28 Nov
Summary
- India's cabinet approved a $7.2B incentive program for rare earth magnets.
- The initiative aims to build domestic capacity and reduce China dependence.
- GMDC shares surged over 8% following the government's strategic announcement.
Gujarat Mineral Development Corporation (GMDC) shares have continued their upward trend, surging 8.4% to ₹569.80. This rally is attributed to the Union Cabinet's recent approval of a ₹7,280 crore incentive program designed to boost India's rare earth magnet production. The initiative underscores the nation's commitment to developing self-sufficiency in critical minerals and reducing dependence on China.
The comprehensive seven-year program targets the creation of integrated manufacturing facilities with an annual capacity of 6,000 metric tons. Minister Ashwini Vaishnaw highlighted India's significant rare earth deposits and the government's plan to establish five initial units within three years. This strategic push aims to secure India's position in the global rare earth magnet supply chain.
Finance Minister H.D. Kumaraswamy detailed the financial support, including capital subsidies and sales-linked incentives, totaling ₹7,280 crore over several years. Both public and private sector companies are eligible, with GMDC, a state-owned entity, poised to benefit. This move is a direct response to global supply chain disruptions, particularly those stemming from China's export restrictions.
