India plans rare earth magnet incentives as supply threat mounts, sources say (Reuters)
India is in talks to offer production-linked financial incentives and partial cost subsidies to develop domestic rare earth magnet manufacturing, aiming to cut reliance on China, which currently controls 90% of global processing and has imposed export curbs disrupting sectors like autos and defence. Despite having 6.9 million tonnes of rare earth reserves, India mines only a fraction and often exports raw materials like neodymium due to limited domestic processing; a new National Critical Mineral Mission launched in April targets self-reliance in this sector. With automakers warning of imminent shutdowns, SIAM has cautioned that production could halt entirely, India may also send a delegation to Beijing for quicker clearances while weighing tariff exemptions on critical machinery to support local production.
India, Italy get into a huddle over critical mineral squeeze (The Economic Times)
India and Italy raised concerns over the global over-dependence on a few countries, particularly China, which controls around 90% of rare earth magnet supplies, for critical minerals vital to semiconductors, aerospace, and EV batteries. At the India-Italy Strategic Economic Partnership Forum, both nations advocated for diversified supply chains and proposed joint ventures between their private sectors to process and secure these resources. India emphasized the strategic importance of participating in regions like Africa and South America to reduce vulnerabilities and strengthen global economic resilience.
Govt eases certain SEZ rules for semiconductors, electronic components manufacturing (The Economic Times)
The government has reduced the minimum contiguous land requirement for SEZs dedicated solely to semiconductor or electronic component manufacturing from 50 hectares to just 10 hectares, aiming to boost India’s high-tech industrial base. The revised definition includes a wide range of electronic components such as PCBs, Li-ion cells, camera modules, and IT hardware. Additionally, the Board of Approval may now relax the condition for encumbrance-free land if the area is mortgaged or leased to central or state authorities.
