India's Push for Domestic Production of Rare Earth Magnets: A Strategic Move Forward
India plans to subsidize domestic production of rare earth magnets, crucial for high-performance automotive applications. The initiative, pending Cabinet approval, aims to reduce reliance on imports, especially from China, whose export restrictions have caused global disruptions. A decision is expected within 15-20 days.
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The Indian government is poised to launch a scheme aimed at subsidizing the domestic production of rare earth magnets, according to Union Minister H D Kumaraswamy. The decision is expected within 15-20 days, pending stakeholder consultations on the subsidy amount.
With a budget potentially crossing Rs 1,000 crore, the scheme could require Union Cabinet approval, explains Kamran Rizvi, Secretary of the Heavy Industries Ministry. If incentives fall below this threshold, approvals will rest with the heavy industries and finance ministers.
China's export limits on key metals have disrupted global automotive and semiconductor industries, prompting India to expedite domestic production and explore interim alternatives like Japan and Vietnam. Numerous firms seek DGFT approval to import these magnets to avoid production setbacks.
(With inputs from agencies.)
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