MAGNETIC SHIFT

India's ₹7,280-Crore Push Aims To Break China's Rare Earth Dominance

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India is entering one of the most strategically significant phases of its industrial evolution.

With the launch of the National Critical Mineral Mission (NCMM) and the newly approved Rare Earth Permanent Magnet Manufacturing Scheme in November ‘25, the country is undertaking an ambitious effort to secure critical mineral supplies while building advanced manufacturing capabilities in rare earth magnets.

The Union Cabinet in November ‘25 announced the policy with an outlay of ₹7,280 crore over seven years. This PLI (Production-Linked Incentive)-style scheme is intended to establish India as a key player in the high-performance magnet value chain.

These moves could redefine India’s electric mobility, renewable energy, electronics, and defence ecosystems.

THE STRATEGIC IMPORTANCE OF RARE EARTHS IN THE GLOBAL TECHNOLOGY RACE

Rare earth elements such as neodymium, praseodymium, dysprosium and terbium are the quiet enablers of modern technology. These metals underpin the neodymium-iron-boron (NdFeB) magnets used in electric vehicle traction motors, wind turbine generators, industrial automation systems, robotics, drones, appliances, smartphones and a wide range of defence applications. They are valued not for scarcity but for unique magnetic and thermal properties that allow compact, energy-efficient and high-performance designs.

Global dependence on China has long been an issue. China dominates the rare earth supply chain - from mining to ore dressing, separation, metal making and magnet manufacturing - controlling more than 80% of global capacity. Even technologically advanced economies such as Japan, Korea, the United States and Europe rely heavily on Chinese magnets.

FILLING THE GAP