New Delhi, Nov 3 : In a major push to build domestic capacity in the strategic rare earth sector, India plans to almost triple the size of its incentive programme for rare earth magnet manufacturing to more than Rs 7,000 crore.

The move comes as several nations, including India, step up efforts to establish a reliable supply chain for rare earth magnets -- key components used in electric vehicles, wind turbines, smartphones, and defence systems -- amid China's growing export restrictions, according to reports.

China currently processes nearly 90 per cent of the world's rare earth output. In April this year, Beijing tightened export controls on critical minerals as its trade tensions with the US deepened, disrupting supplies to automakers and clean energy industries across the globe.

India's expanded production-linked incentive (PLI) plan aims to attract private investment, promote local manufacturing, and reduce dependence on Chinese imports.

The government is also exploring partnerships with resource-rich nations to ensure secure access to raw materials needed for magnet production.

Industry experts said the proposed boost in incentives reflects India's broader strategy to strengthen its critical minerals ecosystem -- from exploration and mining to value addition and high-tech manufacturing.

Earlier in the day, the PHD Chamber of Commerce and Industry (PHDCCI) had urged the government to set up a dedicated Department of Critical Minerals and adopt an 'aggressive mineral diplomacy' to safeguard India from global supply-chain disruptions.

The chamber also called for inter-ministerial coordination and strategic stockpiling of key minerals, similar to the US oil reserve model.

Experts have repeatedly highlighted that the global energy transition will rely heavily on critical minerals.

Electric vehicles are estimated to be six times more mineral-intensive than conventional cars, while renewable energy technologies like solar and wind require up to three times more minerals than traditional sources.

'By scaling up its rare earth magnet production, India aims not only to strengthen its manufacturing base but also to position itself as a key player in the global clean energy and electronics value chains,' according to reports.

/IANS