India has finalized a Rs 5,000 crore incentive scheme to boost domestic rare earth elements production.
The move seeks to reduce the nation’s heavy reliance on imports, particularly from China, and secure a vital supply chain for critical industries like electric vehicles (EVs), renewable energy, and advanced electronics.
The newly approved scheme will provide financial incentives to companies investing in the mining, processing, and refining of rare earth elements within India. The proactive measure comes as global supply chains face increasing disruptions, with countries like China tightening export controls on these minerals.
Officials expect the incentive scheme to catalyze private sector investment and foster technological advancements in the rare earth value chain.
The government aims to establish a self-reliant rare earth elements industry to ensure a stable and secure supply of these strategic minerals for India’s rapidly growing technological and industrial sectors.
Industry experts widely recognize rare earth elements as the backbone of modern technology, essential for the high-performance magnets used in EV motors, wind turbines, smartphones, and defense equipment.
Despite holding the world’s fifth-largest rare earth reserves, India has historically lagged in establishing a robust domestic production and processing ecosystem, leading to significant import dependency.
This initiative marks a significant step towards bolstering national economic security and achieving the vision of a “Digital-First Future” for the country.
