India Advances Rare Earth Minerals Sector with New Scheme and Budget Plans

India is advancing efforts to boost its rare earth minerals sector to reduce dependence on China. Major industrial groups like Adani, Reliance, and Maruti Suzuki have shown interest in a proposed ₹7,280-crore government scheme aimed at developing domestic capacity for rare earth permanent magnets by 2030. Despite holding significant reserves, India currently produces less than 1% globally. The upcoming Budget 2026 is expected to introduce policies supporting mining, processing, and manufacturing to strengthen the supply chain for critical minerals vital to EVs, defense, and electronics.