Govt Pushes Rare-Earth Magnet Capacity To Cut Import Dependence: Shaktikanta Das

Shaktikanta Das explains the government’s push to build domestic capacity in critical manufacturing inputs where India remains heavily dependent on imports. He highlights rare-earth permanent magnets as a key example, noting their importance for automobile manufacturing, electronic hardware and several other industries. Das says global supply disruptions, including restrictions on rare-earth magnet exports, exposed the risks of concentrated supply chains, with a large share of the global ecosystem originating in China. In response, the government has moved to develop domestic capabilities in rare-earth permanent magnets. He says the broader focus is on building long-term domestic capacity in strategically important sectors, alongside continuing structural reforms. Das also highlights the need to maintain fiscal, monetary, macroeconomic and financial stability, which he describes as the foundation for sustained long-term economic growth.