Sources told ANI that the Union Cabinet is expected to approve on Wednesday a Rs 7,000-crore incentive scheme aimed at boosting domestic production of rare earth magnets. The seven-year scheme is designed to cut India’s reliance on imported critical minerals and strengthen supply chains for advanced manufacturing. The initiative is likely to support the development of nearly 6,000 tonnes of rare earth magnet production capacity. These magnets are vital for electric vehicles, electronics, wind turbines, defence systems, and other high-tech industries.

According to sources, the Finance Ministry has already cleared the proposal, enabling the Cabinet—whose meeting began today at 12:30 pm—to consider it. The Ministry of Mines has drafted the scheme with an emphasis on attracting both global and domestic companies, increasing value addition within India, and ensuring long-term access to strategic materials.

India currently depends heavily on Chinese rare-earth permanent magnet imports. The new incentive programme aims to spur investment in processing, refining, and magnet-making capabilities, which are currently limited in the country. Sources added that the scheme supports the government’s broader goal of strengthening critical mineral supply chains and boosting technological self-reliance in emerging sectors. The Cabinet is expected to give its approval soon.