Centre to incentivise domestic production of rare earths: Union Minister of Steel and Heavy Industries, Mr. H.D. Kumaraswamy
- IBEF
- September 15, 2025
India plans to introduce fiscal incentives to boost domestic production of rare earth magnets, a key component for electric vehicle (EV) motors, amid global supply disruptions and China’s market dominance, Union Minister of Steel and Heavy Industries, Mr. H.D. Kumaraswamy, said on Friday. He highlighted that a dedicated scheme is being designed to provide targeted support for both capital and operational expenditure, helping bridge cost gaps, lower tariffs on essential equipment, and ensure a stable supply chain despite rising international trade restrictions.
The proposed programme, under inter-ministerial review, includes a Rs. 1,345 crore (US$ 152 million) subsidy to facilitate investment in processing facilities that convert rare earth oxides into magnets. Indian Rare Earth Magnets Ltd, a public sector enterprise under the Ministry of Atomic Energy, is the sole domestic source of rare earths. Rare earth magnets, particularly neodymium-iron-boron (NdFeB), are critical for high-performance automotive applications such as EV traction motors and power steering systems. The move aims to strengthen India’s position in global value chains, reduce import dependence, and secure supplies for industries ranging from automobiles to semiconductors.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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