India launches REPM scheme to bolster supply resilience

New Delhi announced a Rs 7,280 crore programme to build a domestic Sintered Rare Earth Permanent Magnet (REPM) industry, aimed at reducing import dependence and supporting growing demand.

The package combines Rs 6,450 crore of sales‑linked incentives over five years with a Rs 750 crore capital subsidy to catalyse an integrated manufacturing ecosystem covering oxides, metals, alloys and finished magnets. The target is 6,000 metric tonnes per annum of REPM capacity.

Industry group IESA said the move fills a critical gap in high‑technology supply chains and will act as a force multiplier for semiconductor and electronics manufacturing by securing access to strategic materials. REPMs are key components in EV traction motors, precision motors, automation and fab equipment, power electronics, renewable energy generators, aerospace and defence systems, and 5G/AI hardware.

Officials and industry observers expect the incentives to attract both global and domestic firms, boost competitiveness, and position India as an alternative magnet supply hub - reducing risks of production stoppages from external disruptions and supporting the country’s semiconductor ambitions.