Overview
- Officials are preparing a package of more than ₹7,000 crore (about $786–788 million) to expand domestic magnet manufacturing, according to reports citing people familiar with the plan.
- The expanded scheme is expected to back roughly five firms through production-linked incentives alongside capital subsidies.
- Final funding levels and detailed terms could change because the plan has not yet been approved by the cabinet and the information is not public.
- Alongside manufacturing support, the government is funding studies into rare‑earth‑free motor technologies such as synchronous reluctance designs and plans to tap ANRF resources to boost related R&D.
- The push follows supply disruptions tied to China, which processes about 90% of global rare‑earth output, while experts warn of execution risks including limited technical expertise, environmental costs, and India’s relatively low R&D spending.