India to manufacture rare earth magnets locally due to Chinese supply cut
India is looking to manufacture rare earth magnets. A $156 million subsidy scheme has been introduced to domestic producers, the website Moneycontrol said on Friday.
The South Asian nation possesses the world's third-largest reserves of rare earths, but less than 20% has been explored so far.
"It is proposed that there will be two manufacturers as of now, but this could change by the time the scheme is ready," India's Minister of Heavy Industries and Steel H.D.Kumaraswamy has said, according to the website.
An official at the ministry said the subsidy will be available to manufacturers that undertake end-to-end processing, from rare earth oxides to magnets.
The proposed scheme aims to support both private companies and public sector enterprises by providing incentives to establish domestic capacity across the entire value chain.
India Rare Earth Limited, a government-backed company, is set to play a crucial role by providing about 500 tons of rare earth raw materials to original equipment manufacturers involved in magnet production, the Moneycontrol report said.
Billionaire Anil Agarwal's Vedanta Group, JSW Group and EV parts maker Sona BLW Precision Forgings Ltd. are among those who have expressed an interest in this initiative, according to a report by Bloomberg.
New Delhi has stepped up its efforts to make the magnets that are used in electric vehicles, generators and hard drives, after Beijing announced export restrictions in April. China presently dominates the global market, accounting for around 60% of the world's supply of rare earth magnets.
Under China's revised rules, its exporters are required to secure licenses and submit end-use declarations that confirm that materials will not be used in the defense industry or get re-exported to the US.
Indian industry experts have called on the government to support the manufacturing of the component, which is also crucial for the renewable energy sector.
In the 2024-25 fiscal year, the South Asian nation imported 53,748 tons of rare earth magnets, according to the Economic Times.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
43 minutes ago
- Time of India
New-Age lending model helping banks to cut costs and meet customer expectations
Across global financial markets, lending is experiencing a major shift. Borrowers now expect immediacy, personalization, and simplicity in every interaction—whether applying for a personal loan on their mobile device or financing a home, vehicle, or business. However, many banks and financial institutions are hindered by systems designed for a slower, less connected world. A World Bank report estimates that micro, small, and medium enterprises face an annual credit gap of USD 5.2 trillion—about 1.5 times the current lending volume for these businesses. With conversations from banks and lenders, it's clear: Legacy Loan Origination Systems are no longer adequate. They were built to standardize, not to innovate. They offer control—but make it hard to adopt changes. Today, with tech-savvy customers and constantly changing rules, this lack of flexibility has become a drawback. According to a market research, digital lending platforms in India are projected to reach over 500 million customers by the end of 2025, with the lending segment expected to hit USD 1.3 trillion in disbursements, driven by advancements in financial technology and increased smartphone penetration. Hence, what is needed is not just digital enhancement, but a fundamental reinvention of how lending is delivered, scaled, and evolved. This is where the model of Lending-as-a-Service is proving to be a game-changer. Lending-as-a-Service redefines lending not as a static software platform, but as a flexible, cloud-powered ecosystem. It enables lenders to break down the lending process into modular services that can be rapidly configured, deployed, and scaled across various product lines—from personal and auto loans to corporate, housing, and consumer durable finance. By adopting this model, financial institutions are no longer bound by one-size-fits-all workflows or long development cycles. They gain the agility to experiment, personalize, and adapt without overhauling their core architecture. But technology alone is not the differentiator—it's the outcomes that matter. Institutions supported with platforms with Lending-as-a-Service architecture have consistently accelerated their go-to-market timelines, dramatically improved customer satisfaction, and reduced operational costs. We've seen banks launch new retail lending products in a matter of days. We've seen journeys that once required manual underwriting transformed into straight-through processes powered by AI. In several deployments, the cost per loan has reduced by over half, while conversion rates have increased multifold. For instance, a leading financial services provider in India leveraged our platform to launch a digitally native loan journey for Indian customers, covering onboarding, KYC, credit scoring, and disbursal—all within a few days. Another bank in Southeast Asia reimagined its auto finance journey by integrating real-time approvals, e-KYC, and government API linkages into a seamless customer flow. These institutions weren't just digitizing—they were building lending businesses designed for today's customers and tomorrow's challenges. This transformation is also enabling compliance readiness at scale. In regulated markets such as the UAE, India, and Southeast Asia, stakeholders are able to quickly embed policy changes, update product terms, or roll out pre-approved offers—without recoding, retraining, or retesting legacy systems. Thus, the future of lending will belong to those who are agile, responsive, and deeply aligned with the needs of their borrowers. Lending-as-a-Service offers a pathway to that future—a model that is not only more adaptive but also more resilient in the face of change. At the core of this shift is a new generation of lending platforms — modern, unified lending infrastructure built for speed, scalability, and intelligence. To illustrate, our platform, built on a microservices-based, cloud-native foundation, enables institutions to launch and iterate with confidence. With the ability to integrate more than 175 APIs, our ecosystem supports real-time connectivity with internal banking systems, fintech partners, government APIs, credit bureaus, fraud detection engines, and compliance tools. Additionally, this allows banks and financial institutions to no longer be constrained by what their systems can support—they are empowered to lead with what their customers demand. The transformation is not incremental. It is structural. And it is happening now. It's time to reimagine lending and reinvent success. By Ravish Pandey, Head of Product Innovation, and Sachin Gupta, Head of Client Accounts and Engagement at BUSINESSNEXT AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
Goa stands to benefit from India-UK free trade agreement: GCCI
Panaji: The India-UK free trade agreement (FTA) will significantly benefit Goa's pharmaceutical companies, tourism sector, and feni producers, said the Goa Chamber of Commerce and Industry (GCCI) on Saturday. GCCI president Pratima Dhond said that the recent signing of the trade agreement between the two nations could provide a much-needed boost to Goa's economy. The FTA provides zero-duty access to the UK market for nearly 99% of Indian exports, including pharmaceuticals. While the UK imports nearly $30 billion worth of medicines and medical devices, India's pharma exports to the UK currently stand at under $1 billion. The bilateral agreement is anticipated to unlock major export opportunities for the sector. Goa is ranked sixth in pharmaceutical exports, with an overall share of 5.6%. 'This landmark agreement is expected to significantly enhance trade and investment opportunities between India and the UK, with far-reaching benefits for the state,' she said. The FTA could lead to increased travel and tourism opportunities between India and the UK, and this will benefit Goa's tourism industry. Dhond said that Goa's feni industry will gain recognition in the British market with geographical indication protection, opening up new export opportunities. 'This will be a major boost for govt, which is promoting exports of Indian alcoholic beverages to global markets,' she said. Meanwhile, duty-free exports of marine products to the UK, textile businesses, and IT services also stand to benefit from the trade agreement, boosting the state's economy over the long term, said GCCI. The UK imports around $5.4 billion worth of marine products such as prawns, tuna, mackerel, sardines, squid, crab, and pomfret. India's current share in the UK's marine imports is just 2.3%, but this share is projected to double after the FTA. All coastal states stand to benefit from export-led job creation. 'Indian professionals, including those from Goa, will have easier access to the UK market, with relaxed visa procedures and exemptions from UK social security contributions,' said Dhond.
Time of India
an hour ago
- Time of India
Indian mining seminar highlights responsible practices
Nagpur: The two-day seminar on "Indian Mining: Present Scenario and Future Perspective," organised by the Mining Engineers Association of India (MEAI), ended on Saturday with experts emphasising on responsible mining and understanding the changing landscape of the sector. Chairman-cum-managing director (CMD) of Manganese Ore India Limited (MOIL), Ajik Kumar Saxena, who was the chief guest, spoke on the timely analysis of mining leftovers for identifying the possibility of finding critical minerals from mine waste, tailings, or slags. The CMD of Mineral Exploration and Consultancy Limited (MECL), also a Nagpur-based public sector undertaking, Indra Dev Narayan was the guest of honour. He said PSUs like MECL play a crucial role in shaping the future of the country's mining sector. "We have been instrumental in discovering reserves of nearly all major minerals across the country. In recent years, MECL has expanded its role beyond traditional drilling to advanced exploration technologies, data analytics, and remote sensing. MECL is now working as a knowledge partner to both govt and the private sector in this decade of critical mineral demand and energy transition," Narayan said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play this game for 1 minute and see why everyone is addicted. Undo The controller general of the Indian Bureau of Mines (IBM), Peeyush Narayan Sharma, stressed on the need for responsible mining along with the adoption of new technology. He also said nothing can be written off as waste in the mining sector.
