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India to Start Rare-Earth Magnet Production in 2026 with ₹7,280 Cr Scheme, Critical Mineral Parks in 4 States

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
19 Feb 2026
~2 min
Source: The Hindu
Key Data:₹7,280 crore6,000 metric tons per annumNovember 2025
Bodies:Ministry of MinesFICCIUnion Cabinet
Practice MCQs from today's news ▸
What This Article Covers

1.Union Mines Minister announced India will commence production of rare-earth permanent magnets within 2026 under a Cabinet-approved scheme with 6,000 metric tons annual capacity and ₹7,280 crore outlay.

2.Four states—Odisha, Andhra Pradesh, Maharashtra, and Gujarat—have been identified for setting up dedicated parks for critical mineral processing plants to stop exporting raw materials for processing abroad.

3.The strategy includes a focus on urban mining, extracting critical minerals from electronic waste like old mobile phones, which bypasses the need for new mines and environmental clearances.

The Big Picture
Prelims · HighMains · Medium

India announces a strategic push to build domestic capacity in rare-earth permanent magnets, a critical component for EVs, defence, and renewables, with a ₹7,280 crore scheme and dedicated processing parks in four states. This move directly targets reducing import dependency on China and securing supply chains for green technology, a high-priority area for UPSC Economy and Environment sections.

Exam Lens

Quick Exam Facts From News

Scheme Financial Outlay₹7,280 crore
Production Capacity6,000 metric tons per annum
Cabinet Approval DateNovember 2025
States for Processing ParksOdisha, Andhra Pradesh, Maharashtra, Gujarat

1-Minute Revision

  • ›Scheme Financial Outlay: ₹7,280 crore
  • ›Production Capacity: 6,000 metric tons per annum
  • ›Target this Data: ₹7,280 crore and 6,000 metric tons per annum for the rare-earth magnet scheme.
  • ›Target this Nodal Body: Ministry of Mines and the Federation of Indian Chambers of Commerce & Industry (FICCI) summit context.
  • ›Target this Legal Point: The scheme was approved by the Union Cabinet in November 2025.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The scheme for manufacturing rare-earth permanent magnets, as announced by the Mines Minister, falls under the primary purview of which Union Ministry?

Q2Statement-basedHard

Consider the following statements regarding the news on rare-earth permanent magnets:

1. The Union Cabinet approved the scheme for manufacturing these magnets in November 2025 with a financial outlay of ₹7,280 crore.

2. The dedicated parks for critical mineral processing will be established in the states of Odisha, Andhra Pradesh, Maharashtra, and Gujarat.

3. Rare-earth permanent magnets are primarily used in thermal power plants and conventional automobile engines.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the annual production capacity target for the rare-earth permanent magnet manufacturing scheme approved by the Cabinet?

Q4Application/ImpactMedium

What is a key rationale, as highlighted by the Mines Minister, for setting up critical mineral processing parks within India?

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