The Indian government is preparing to expand its incentive scheme for domestic rare-earth magnet manufacturing from the earlier figure of US $290 million to about US $788 million (around ₹7,000 crore), pending cabinet approval. 

 The push comes amid growing global focus on securing supply chains for magnets used in electric vehicles, wind turbines, defence systems and other advanced technologies—sectors where China currently controls roughly 90 % of processing capability.

Under the revised plan, the government would provide production-linked and capital subsidies to around five companies. The objective is to attract global magnet manufacturers to set up local operations or joint ventures in India, thereby reducing the country’s strategic reliance on Chinese imports. 

However, analysts caution that India still faces several structural hurdles: limited domestic technological know-how, time-intensive project development, and the need to match cost competitiveness against China’s established supply chains.