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With the rare earth material supply crisis looming large, the government is set to launch an incentive programme to encourage domestic production of these minerals. The government will roll out a scheme to subsidise domestic production of rare earth magnets in 15-20 days, Heavy Industries Minister H D Kumaraswamy said on Tuesday.

The minister said that consultation with stakeholders is underway to decide the amount of the incentive programme.  According to ministry officials, if the total incentive crosses Rs 1,000 crore, the scheme will be sent to the Union cabinet for approval.

The latest crisis emanates from stricter controls imposed by China on the export of seven rare earth elements and finished magnets. This revised framework demands detailed end-use disclosures and client declarations, including confirmation that products will not be used in defense or re-exported to the US. This added scrutiny has prolonged the clearance process to at least 45 days, leading to significant delays and a growing backlog that is tightening global supply chains. China is the world’s dominant exporter of rare earth magnets, controlling over 70% of global Rare Earth Element (REE) production and over 90% of refining capacity.

Read more at: https://www.newindianexpress.com/business/2025/Jun/24/india-to-roll-out-incentive-scheme-for-rare-earth-production-15-20-days