New Delhi, Nov 28 (LatestNewsX) – The India Electronics and Semiconductor Association (IESA) announced on Friday that the government’s 7,280‑crore‑rupee plan for sintered rare‑earth permanent magnets (REPM) will bolster India’s supply‑chain resilience, cut import dependence and meet a demand that is expected to double by 2030.
“This is a visionary, first‑of‑its‑kind initiative that addresses one of the most critical gaps in India’s high‑technology value chain,” the industry body said in a statement.
IESA added that the scheme will serve as a force multiplier for India’s broader semiconductor manufacturing ambitions by ensuring secure access to strategic materials.
"The combination of sales‑linked incentives and capital subsidies will make large‑scale REPM manufacturing globally competitive and attract top‑tier global and Indian companies," said Ashok Chandak, President of IESA.
The program aims to establish India’s first fully integrated manufacturing ecosystem that spans oxides, metals, alloys and finished magnets.
Rare‑earth permanent magnets are fundamental building blocks for electric vehicles, renewable‑energy systems, aerospace, defence, consumer electronics, and the semiconductor equipment and electronics manufacturing ecosystem.
For the semiconductor and ESDM sectors, REPM availability is critical for precision motors, automation systems, fab equipment, power electronics, EV traction systems, and 5G/AI hardware.
It also demonstrates India’s ability to develop strategic solutions and provide deterrence against the “arm‑twisting” strategies of any nation. Indian manufacturing will no longer face line‑stop risks from external supply disruptions.
The scheme could position India as an alternative hub in the rare‑earth magnet supply chain as global industries look for diversified and reliable sources.
The program targets a total of 6,000 metric tons per annum of integrated REPM manufacturing capacity in India.
It consists of sales‑linked incentives of 6,450 crore rupees on REPM sales for five years and a capital subsidy of 750 crore rupees for setting up the manufacturing capacity.
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