India, July 10 -- In a move to reduce India's dependence on China for rare earth magnets, the Centre is working on a plan to incentivise local production.

According to a PTI report, the ministries of heavy industries and mines are drafting a new scheme that would offer incentives to both private companies and public sector undertakings (PSUs) to produce rare earth materials within the country.

The step comes after China imposed export restrictions in April 2025. These new rules require exporters to obtain licences and submit detailed information about the end-use of these materials.

Notably, the move has already impacted India, which imported more than 80% of its rare earth magnets, around 540 tonnes, from China in the last fiscal year...