India is preparing a major expansion of its rare-earth magnet manufacturing program, signaling one of its most ambitious industrial strategies in decades to secure control over materials vital to the world’s clean-energy transition, defense systems, and advanced electronics. According to a Bloomberg report citing senior government officials, New Delhi is set to nearly triple the size of its incentive scheme for domestic production of rare-earth magnets – a move that could reshape global supply chains long dominated by China.

If approved, the expanded initiative would increase funding from roughly $290 million to about $788 million, underscoring India’s determination to establish itself as a serious player in the global market for rare-earth elements (REEs). The proposal remains pending final approval, but it reflects growing urgency among Indian policymakers to reduce dependence on Chinese imports and secure strategic resources for its expanding high-tech and defense sectors.

Rare-earth elements – a group of 17 metallic elements including neodymium, dysprosium, and terbium – are essential for manufacturing powerful permanent magnets used in electric vehicles (EVs), wind turbines, smartphones, and military systems. For decades, China has maintained overwhelming dominance, controlling more than 90% of the world’s refining capacity and approximately 98% of global magnet production, according to the International Energy Agency (IEA).

This concentration of power has long raised alarms in Washington, Brussels, and now New Delhi. In recent years, Beijing has demonstrated a readiness to weaponize its rare-earth dominance for geopolitical leverage. China introduced export restrictions on certain REEs earlier this year, citing national security concerns and the need to safeguard its strategic resources. The move disrupted global supply chains and intensified fears among industrialized........

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