The Indian government is exploring ways to boost domestic manufacturing of rare earth magnets, a critical component for the electric vehicle and electronics industries, amid China’s export restrictions, sources told CNBC-TV18.According to sources, officials are evaluating how India Rare Earths Ltd., a Government of India PSU, can be leveraged for rare earth magnet production.
The government is also considering private sector collaboration with India Rare Earths Ltd. to build domestic capacity.
Commerce Minister Piyush Goyal has already held discussions with automakers to assess the impact of China’s export controls.
The Directorate General of Foreign Trade (DGFT) also conducted a meeting with automobile manufacturers on Tuesday (June 10) to better understand the challenges faced by Indian companies in securing export licenses from the Chinese government.The matter has also been escalated diplomatically, with the Indian Embassy in China taking up the issue with the Chinese Commerce Ministry, sources said. India is seeking greater transparency in the application process and faster disposal of export license requests.While an automotive industry delegation is yet to travel to China for direct talks, the Indian government is exploring several mid- to long-term strategies to support the sector.Among the options being considered are a Production-Linked Incentive (PLI) scheme, capital subsidies, and other incentives to encourage local manufacturing of rare earth magnets.Also Read: Maruti Suzuki cuts e-Vitara production by two-thirds amid rare earth material shortage
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