Overview

• The government will finalise a subsidy scheme for domestic rare earth magnet production within 15–20 days, Heavy Industries minister H D Kumaraswamy said.
• Officials noted that any incentive package exceeding ₹1,000 crore must receive Union Cabinet approval, while smaller outlays can be cleared at the ministry level.
• The proposal targets production of roughly 1,500 tonnes of magnets, with India Rare Earths Limited committed to supplying about 500 tonnes of raw materials.
• Indian manufacturers including Tata Motors and Mahindra & Mahindra are pursuing joint ventures abroad and sourcing magnets from Japan and Vietnam to bridge supply shortfalls.
• China’s April export licensing controls on key rare earth elements have disrupted global supply chains and placed over 21,000 jobs in India’s audio electronics segment at risk.