India is actively developing a strategic initiative to significantly reduce its critical dependence on China for rare earth minerals, a move prompted by recent Chinese export curbs and growing concerns within Indian industry regarding component shortages, particularly for magnets. A comprehensive plan, estimated to be worth between Rs 3,500 crore and Rs 5,000 crore, is on the verge of approval, expected within the next two weeks. This scheme aims to bolster the domestic production of rare earth minerals and derived magnets, prioritizing the establishment of critical mineral production in the shortest possible timeframe.

China's dominance in the global supply of rare earth magnets, coupled with its imposed export restrictions, has underscored the urgency for India to diversify its supply sources. These essential minerals are indispensable for the manufacturing of various high-tech products, including automobiles, electric vehicles (EVs), and crucial renewable energy infrastructure. The financial incentives within India's proposed program will be allocated through a reverse bidding mechanism, a decision that stems from an internal ministerial assessment highlighting the urgent need to lessen reliance on imports from China.

Government officials have indicated that