India to build rare earth magnet stockpiles, incentivize domestic production

Published 05/06/2025, 12:00
© Reuters.

Investing.com -- India is in discussion with various companies to create long-term reserves of rare earth magnets. The government also aims to encourage domestic production by offering fiscal incentives, according to a Reuters report on Thursday.

The government, led by Prime Minister Narendra Modi, is keen to expand domestic manufacturing capabilities to ease the dependence on China. It is contemplating offering production-based fiscal incentives to businesses, the report added.

The Ministry of Heavy Industries is reportedly formulating a plan that includes partially subsidizing the difference between the final price of magnets produced in India and the cost of imported Chinese magnets. This approach would help achieve cost equality and stimulate local demand.

However, the funding for this initiative is still under discussion. The government is expected to meet with industry representatives next week to finalize the details.

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