New Delhi, June 6 -- India is taking proactive measures to address the growing concern over its dependence on China for rare earth magnets, essential components in electric vehicles (EVs), renewable energy systems, and defence technologies.

In response to China's export restrictions imposed in April 2025, the Indian government is drafting a plan to offer financial incentives to companies engaged in domestic production of rare earth magnets.

The Ministry of Heavy Industries is considering production-linked incentives and potential subsidies to bridge the price gap between Indian-made magnets and cheaper Chinese imports.

This initiative aims to gradually build a domestic supply chain and reduce reliance on imports.While the plan is still...