India's plan to enhance local rare earth magnet production is jeopardized by China's new export restrictions on essential processing equipment, impacting self-sufficiency goals.

India's efforts to enhance its local production of rare earth magnets, crucial for high-tech industries, are facing significant challenges due to China's newly imposed export restrictions on essential processing equipment. The Indian government has proposed a Rs 7,300 crore scheme to incentivize local manufacturing, but the recent controls from China could undermine these plans. China currently dominates the global rare earth market, accounting for 61% of production and 92% of processing. The restrictions require exporters to obtain licenses for equipment, which could lead to increased costs if India turns to alternatives from Germany and Japan. This situation raises concerns about the viability of India's self-sufficiency goals in rare earth magnet production, as the necessary technology and equipment are largely controlled by China. The scheme is pending cabinet approval, with hopes to support the establishment of processing units and supply chains within India.