India is set to significantly expand its investment in rare earth magnet manufacturing with a planned allocation of $788 million (around ₹7,000 crore), nearly tripling the initial outlay, as part of a strategic push to reduce dependence on Chinese imports and enhance self-reliance in critical minerals. The proposal, awaiting cabinet approval as of early November 2025, aims to build a robust domestic ecosystem for rare earth permanent magnets, essential for electric vehicles, renewable energy, and defence technologies. This move follows China’s April 2025 tightening of rare earth export controls, which disrupted global supply chains. The enhanced investment will support about five companies through production-linked incentives and capital subsidies, aiming to triple India’s magnet production capacity by 2030, fortifying the country’s strategic and security posture amid heightened geopolitical competition over critical materials. The initiative aligns with the National Critical Mineral Mission launched in January 2025 and complements ongoing efforts in mining reforms and research ecosystem developments.