By Admin 
The Government of India has taken a big step towards increasing the domestic production capacity of Rare Earth Permanent Magnets and reducing dependence on China. The Cabinet has approved the Rare Earth Manufacturing Incentive Scheme of Rs 7,280 crore, under which a production capacity of 6,000 MTPA will be developed in the next seven years. It will have five units of 1,200 MTPA each and is expected to start production within the next two to three years. The scheme focuses on creating Made-in-India supply chains for high-tech sectors like EVs, defence, wind turbines, electronics and aerospace. Currently India imports almost all its REPM and is largely dependent on China. The new scheme is being considered a game-changer as it will establish the country’s first integrated REPM manufacturing chain, thereby promoting technology, employment and strategic self-reliance. Large industrial groups like GMDC, Sona Comstar, Bharat Forge and JSW Group have shown interest in this sector and are working on investment plans in rare earth mining, processing and magnet manufacturing. Besides, the government has also given import licenses to some companies to meet the demand, until domestic production starts on a large scale. Following this development, stocks like GMDC, Sona BLW Precision, Bharat Forge and JSW Steel are coming into investors’ focus as potential beneficiaries. This scheme is being considered an important step towards making India a Critical Mineral Powerhouse and the possibility of increasing capital inflow in related sectors has also become stronger.