More Stories

Informist, Tuesday, Feb. 10, 2026

 

NEW DELHI – Production of rare earth magnets in India under the ambitious INR 72.80-billion Rare Earth Permanent Magnet Scheme should begin in two years, Hanif Qureshi, additional secretary in the Ministry of Heavy Industries, said at an event here Tuesday. "The scheme for sintered permanent magnets, which was announced by the Prime Minister (Narendra Modi)... we hope that in the next two years, there will be indigenous production of permanent magnets," Qureshi said at the fifth Global Electrification Mobility Summit hosted by the Society of Indian Automobile Manufacturers.

 

The government in late 2025 approved a scheme to establish a domestic integrated rare earth permanent magnet manufacturing ecosystem. Under this, India aims to establish a manufacturing capacity of 6,000 tonnes per annum of this input material, which is critical in the manufacture of electric vehicles, renewable energy systems, and electronic, aerospace, and defence equipment. India currently sources most of its permanent magnets from China. Between the financial year 2022–23 (Apr-Mar) and FY25, the country's import dependence on China ranged from 59.6% to 81.3% by value and 84.8% to 90.4% by quantity, according to official data.

 

Over the past five years, the automobile industry's production plans have been hampered by supply chain snags involving components such as semiconductor chips and rare earth magnets. China, the largest manufacturer of rare earth magnets, in 2025 imposed export curbs on this essential raw material, throwing a spanner in the production plans of several automakers. Many of them were forced to either alter the designs of their components or arrange for rare earth magnets from other countries.

 

Qureshi spoke of the government's efforts to enable faster adoption of electric vehicles in India. "Certainly while India is a leading manufacturing hub of automobiles, we have to be cognisant of our limitations and of our challenges," he said. Making the supply chain resilient is a challenge that India has to deal with.

 

Under the Union Budget for FY27, the government has proposed to extend the exemptions on basic customs duty given to capital goods that are used to manufacture lithium-ion cells for batteries. "It (the Budget) has taken care of the capital equipment which is used to manufacture lithium-ion cells," Qureshi said. "These are factors which will enhance the competitiveness of the industry. The importance of scales in promoting electrification cannot be ignored."

 

Automakers say limited charging infrastructure slows adoption of electric vehicles whereas charging infrastructure operators contend that low electric vehicle uptake hinders network expansion, the classic "chicken and egg" situation. "Now we talk about the charging being a chicken and egg story, but that has been settled, which means that charging infrastructure must come first," the additional secretary said. 

 

The government has run its flagship electric vehicle adoption scheme since 2015. It started with the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India, or FAME scheme, under which INR 9.12 billion was allotted towards installation of charging infrastructure. Qureshi said the scheme supported the installation of over 9,000 charging stations in the country. "Out of those 9,000, about 6,000 charging stations have been commissioned," he said, adding that the remaining 3,000 stations have been installed and are in the process of being commissioned.

 

The first scheme was replaced by the PM E-Drive scheme in October 2024. Under this scheme, the government allocated INR 20 billion to set up charging infrastructure. This scheme targets installation of 72,000 fast chargers across India, which will be used to charge passenger vehicles, buses, trucks, two-wheelers, and three-wheelers. 

 

The government has already received proposals from some of the oil-marketing companies to set up these stations across Uttar Pradesh, Rajasthan, Kerala, Telangana, Bihar, and Orissa. "Once their proposals are approved, they will be going ahead with issuing the vendors, inviting CPOs (chief procurement officers)," Qureshi said.  End

 

Reported by Anand JC

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.