In a major step toward self-reliance in critical minerals, India has rolled out an integrated rare earth strategy combining an over $800 million (INR 7,280 crore) large-scale manufacturing scheme with region-focused development corridors.
Dedicated Rare Earth Corridors Across 4 Mineral-Rich States
A key pillar of the strategy is the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu states.
These corridors will focus on integrating mining, processing, R&D, and manufacturing activities, leveraging the mineral-rich base of these states while creating region-specific industrial ecosystems.
India has announced the launch of dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu states.
© Photo : X/@PIB_India
Targets 6,000 MTPA Capacity
Approved in November 2025, the $800 million plus Scheme aims to create 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity through global competitive bidding, with up to five beneficiaries.
Incentives & Capital Support to Drive Magnet Manufacturing
The manufacturing scheme includes $715 million (INR 6,450 crore) in sales-linked incentives over five years and $83 million (INR 750 crore) in capital subsidies to support advanced facilities.
With a two-year gestation period followed by incentive-linked production, the initiative is designed to establish an end-to-end value chain — from rare-earth oxides to finished magnets — within India.
Strong Resource Base Backed by GSI’s 482.6 Mln-Tonne Discovery
India’s rare earth push is bolstered by the recent discovery of a strong domestic resource base across Odisha, Kerala, Andhra Pradesh, Tamil Nadu, West Bengal, Gujarat, Maharashtra, and Jharkhand.
The Geological Survey of India (GSI) has identified 482.6 million tonnes of rare-earth ore resources across 34 exploration projects.
India holds 13.15 million tonnes of monazite containing an estimated 7.23 million tonnes of rare-earth oxides, along with in-situ resources in hard-rock areas of Gujarat and Rajasthan.
Reducing Foreign Dependence Amid Surging Demand for EVs, Renewables
Despite its resource potential, India currently depends heavily on imports — primarily from China — for rare earth magnets.
Between 2022 and 2025, imports accounted for 60–80% of the value and 85–90% of the quantity consumed.
The demand for Rare Earth Permanent Magnets (REPMs) is expected to double by 2030 due to EVs, renewable energy, electronics, and defence.
Aligned with Atmanirbhar Bharat, Net Zero 2070, and Viksit Bharat @2047, India’s rare earth push combines domestic capacity building with global mineral partnerships, positioning the country as a reliable and competitive player in critical and strategic materials.