IESA congratulates Govt. of India on ₹7,280 crore scheme for sintered rare earth permanent magnets (REPM)

IESA has congratulated the Government of India on the landmark ₹7,280 crore Scheme for Sintered Rare Earth Permanent Magnets (REPM). This is a visionary, first-of-its-kind initiative that addresses one of the most critical gaps in India’s high-technology value chain.

Rare earth permanent magnets are fundamental building blocks for EVs, renewable energy systems, aerospace, defence, consumer electronics, and, importantly, the semiconductor equipment and electronics manufacturing ecosystem. By establishing India’s first integrated REPM manufacturing ecosystem—from oxides to metals to alloys to finished magnets—the government has taken a decisive step toward strategic self-reliance.

Ashok Chandak, President, India Electronics & Semiconductor Association (IESA, said that this scheme will greatly strengthen India’s supply-chain resilience, reduce import dependence, and support the rapidly growing domestic demand, which is expected to double by 2030. The combination of sales-linked incentives and capital subsidies will make large-scale REPM manufacturing globally competitive and attract top-tier global and Indian companies.

For the semiconductor and ESDM sector, REPM availability is essential for precision motors, automation systems, fab equipment, power electronics, EV traction systems, and 5G/AI hardware. This initiative will act as a force multiplier for India’s broader semiconductor manufacturing ambitions by ensuring secure access to strategic materials.

"This initiative also sends a strong message to the world — that India can develop its own solutions and is not dependent on the arm-twisting strategies of any nation. Indian manufacturing will not face line-stoppage risks due to external supply disruptions.

"Globally, this strongly positions India as a trusted, alternative hub in the rare-earth magnet supply chain, at a time when industries are seeking diversified and reliable sources beyond existing geographies.

"IESA believes this initiative will accelerate India’s march toward Viksit Bharat 2047 and significantly contribute to our Net Zero 2070 goals through support for clean mobility and renewable energy adoption.

"We applaud the government’s bold leadership and remain committed to collaborating with industry and policymakers to build a world-class REPM, electronics, and semiconductor ecosystem in India.”