New Delhi, April 2: India possesses approximately 8.52 million tons of rare earth oxide resources. Despite this, the country remains dependent on imports for rare earth magnets and related products. This reliance is attributed to low-quality reserves, strict regulations, and a limited processing industry. This information was shared by Dr. Rajendra Singh, the Union Minister of State for Science and Technology, in Parliament on Thursday.
In a written response in the Rajya Sabha, Minister Singh stated that the Atomic Minerals Directorate for Exploration and Research (AMD) has identified around 7.23 million tons of rare earth oxide equivalent resources in monazite reserves spread across Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra.
Additionally, approximately 1.29 million tons of extra rare mineral resources have been discovered in the hard rock regions of Gujarat and Rajasthan.
Despite these substantial reserves, India’s dependence on imports continues. Three primary reasons have been identified for this situation. First, the quality of domestic ore is very low (around 0.056-0.058 percent) and contains radioactivity, making extraction difficult and costly. Second, mining reserves are limited due to coastal regulation zone rules and regulations related to forests and mangroves. Third, there is insufficient industry in the country for processing rare earth elements into metals, alloys, and magnets.
To address this shortfall, the central government approved a plan in November 2025 aimed at promoting the production of rare earth permanent magnets. This initiative has a total budget of ₹7,280 crores.
The plan aims to develop the capacity to produce 6,000 metric tons of rare earth permanent magnets annually in India. Over five years, an incentive amount of ₹6,450 crores and a capital subsidy of ₹730 crores will be provided.
The minister also mentioned that a rare earth permanent magnet plant has been established in Andhra Pradesh, which will produce 3 tons of samarium-cobalt magnets annually, used in defense and nuclear energy sectors.
He noted that to further strengthen these efforts, the Union Budget for 2026-27 announced the creation of special rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.
Rare earth permanent magnets play a crucial role in electric vehicles, renewable energy, high-tech electronics, aerospace equipment, and defense systems.
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