Industry Welcomes Rs 7,280 Cr REPM Plan to Cut Imports

• India’s ₹7,280-crore REPM scheme will build 6,000 MTPA domestic magnet capacity
• The initiative strengthens the electronics and semiconductor ecosystem
• It boosts MSMEs, startups, and supply-chain resilience, supporting national manufacturing goals

The ₹7,280 crore REPM program approved by the Union Cabinet is being welcomed as a boost to the EV and electronics industries' supply chains in India. The program proposes to establish 6,000 MTPA in integrated REPM capacity through five projects awarded globally on a competitive basis and to provide capital subsidies and sales incentives for seven years.

The rare earth magnet scheme under the REPM initiative is expected to boost India manufacturing, lead to reduced import dependence for strategic minerals, strengthen the electronics supply chain, and generate a strong industry reaction.

India is expected, for the first time, to provide the ability for end-to-end REPM manufacturing from rare earth oxides to finished magnets to reduce reliance on imports and support the demand for electric and renewable energy vehicles, industrial electronics, and defence. Industry experts have stated that the program solidifies the backbone of the electronics supply chain.

According to Rajoo Goel, the Secretary-General of the Electronic Industries Association of India, rare earth magnets are essential for use in electric motors, defence systems, renewable energy, hard drives, and smartphones.

Professor Mayank Shrivastava from the IISc and Co-Founder of AGNIT Semiconductors stated that magnetic materials are as important as silicon and added that the strategic value of the program is significant.

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The partnership between IESA and Vivek Tyagi will expedite imports for 2-wheeler and 3-wheeler EV manufacturers while also benefiting larger 4-wheeler EV manufacturers.

The executives of both IESA and Vivek Tyagi have stated that the programme will be complementary to the India Semiconductor Mission because it strengthens the entire EV value chain from the manufacture of Permanent Magnet Motors to the manufacturing of Compound Semiconductor Power Systems.

The manufacturers of EMS should have more reliable and predictable supplies of components made using magnets and fewer instances of supply chain disruptions. Manufacturers of Fabless Semiconductors have indicated that the establishment of this scheme is India’s effort to enhance and deepen Value Chains in terms of hardware supporting both MSMEs and startups through incentives.

Experts in the academic and skills sector believe that this programme will not only help to create electronic technology clusters but also promote the 'Vocal for Local'; and help achieve the United Nations Sustainable Development Goals.

Furthermore, the creation of a domestic capacity within our borders for manufacturing REPMs has significant strategic importance because it promotes the development and growth of India’s EV industry, Robotics Industry and Semiconductor Industry and Flexible Electronics Industries.