Bloomberg reported on November 2 that India plans to expand its "Incentive Program for Rare Earth Magnet Manufacturing" by nearly three times, aiming to strengthen the self-sufficiency of critical mineral supply. It is reported that the program will combine "production-linked subsidies" with capital subsidies, focusing on supporting about five enterprises to vigorously build India's domestic rare earth magnet industry and reduce reliance on imports from China. The expanded new program is expected to have an investment scale exceeding 70 billion rupees (7.88 billion US dollars), a significant increase from the previous 290 million US dollars. It is currently awaiting cabinet approval, and the final funding amount may still be adjusted. Currently, China controls about 90% of global rare earth refining capacity. In April 2025, China tightened export controls, prompting India to strive to accelerate the development of its rare earth magnet industry. At present, Indian state-owned enterprises are actively seeking overseas mining partners. Analysts pointed out that if the incentive program is implemented smoothly, it is expected to attract global leading magnet companies to set up factories or establish joint ventures in India, promoting the growth and formation of the local industry. However, the plan still faces challenges such as limited funds and technical expertise, and long project cycles. Additionally, if China relaxes its export restrictions on rare earth magnets to India, it may weaken the motivation for foreign investment in India, increasing the uncertainty faced by India's related industries. Furthermore, it is known that the Modi government has also funded research on synchronous reluctance motor (SRM) technology, which could reduce dependence on rare earth materials.
Original source: www.toutiao.com/article/1847782228479171/
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