New Delhi: India is focusing on domestic production of sintered rare earth permanent magnets, crucial components for electric vehicles (EVs), wind turbines, defence systems, and aeronautics, as part of a broader strategy to strengthen its electric mobility and clean manufacturing ecosystem, Union Heavy Industries Minister HD Kumaraswamy said on Friday, ANI reported.
Addressing the 5th Global Electric Mobility Summit 2026 organized by the Society of Indian Automobile Manufacturers (SIAM), Kumaraswamy said the government is moving to reduce import dependence while building domestic capabilities in high-technology sectors linked to clean energy and mobility.
The Union Cabinet has approved the Rare Earth Permanent Magnets (REPM) scheme with an outlay of Rs 7,280 crore, described by the minister as a strategic intervention to boost indigenous manufacturing. Recent budget measures also exempt capital goods for critical mineral production from basic customs duty, aimed at further stimulating local manufacturing.
To support industrial development, Kumaraswamy noted that the Budget includes plans for industrial corridors in Tamil Nadu, Kerala, Odisha, and Andhra Pradesh, creating integrated ecosystems for processing, component manufacturing, and downstream applications.
Highlighting India’s progress in electric mobility, the minister said the transition has shifted from intent to implementation, backed by policy alignment, budgetary measures, and production-linked incentive (PLI) schemes. Electric mobility, he added, aligns with national priorities such as cleaner growth, energy security, industrial transformation, and self-reliance under Make in India and Atmanirbhar Bharat initiatives.
India’s automotive sector, valued at USD 50 billion, is among the fastest-growing globally. Kumaraswamy emphasized that India, currently the world’s fourth-largest economy with a GDP of USD 4.18 trillion, is on track to become the third-largest by 2030, projected at USD 7.3 trillion.
The country aims to achieve net-zero emissions by 2070, with electric mobility playing a central role in reducing transport-related emissions. Commercial vehicles, contributing over 40% of transport pollution, are a key focus area.
India’s EV market has grown at a compound annual growth rate of over 60% in the past six years. In 2024-25, EV registrations reached nearly 2 million units, mainly electric two-wheelers, while electric passenger vehicles crossed 100,000 units. Electric buses and commercial fleets are also expanding, indicating a shift toward cleaner public and shared transport.
To support adoption, the Ministry of Heavy Industries has approved Rs 2,000 crore under the PM E-Drive scheme to establish over 70,000 charging stations nationwide. On the manufacturing side, the PLI scheme for automobiles and auto components, with an outlay of Rs 25,938 crore, aims to enhance domestic value addition and global competitiveness.
Battery manufacturing is central to energy security and long-term competitiveness. Under the PLI scheme for Advanced Chemistry Cell (ACC) batteries, the government plans to create 50 gigawatt-hours of domestic production capacity, reduce import dependence, and position India as a global manufacturing hub.
Kumaraswamy cited NITI Aayog’s assessment that electric mobility is not only an environmental imperative but also a multi-billion-dollar economic opportunity, with potential to transform service delivery through connected vehicles, data-driven fleet management, and new mobility models.
“India’s vision is to move from adoption to leadership, from participation to influence, and from scale to strategic depth,” Kumaraswamy said, emphasizing that collaboration among policymakers, industry, and innovators will be key to building resilient industries and sustainable livelihoods.
