₹7,280 crore scheme for rare earth magnet manufacturing to boost India’s self-reliance

Mumbai: India has taken a significant step towards strengthening its industrial base with the Union Cabinet approving a ₹7,280 crore scheme to promote domestic manufacturing of sintered rare earth permanent magnets. The initiative is the first of its kind in the country and is intended to reduce dependence on imports while positioning India as a competitive player in the global market.

Rare earth permanent magnets, or REPMs, are among the strongest types of permanent magnets and are critical to a wide range of industries. They are used in electric vehicles, renewable energy systems, aerospace, defence and consumer electronics. At present, India’s demand is largely met through imports, leaving sectors exposed to supply chain risks. The new scheme seeks to establish 6,000 metric tonnes per annum of integrated manufacturing capacity, covering the entire process from rare earth oxides to finished magnets.

The government has emphasised the strategic importance of the move. With demand for REPMs expected to double by 2030, driven by the rapid growth of electric mobility and renewable energy, the scheme is designed to secure supply chains for industries central to India’s economic and environmental goals. It also supports the Atmanirbhar Bharat Abhiyan and the country’s commitment to achieve net zero emissions by 2070.

The financial structure of the scheme reflects its ambition. Of the total outlay, ₹6,450 crore will be provided as sales-linked incentives over five years, while ₹750 crore will be allocated as capital subsidies to set up facilities. Capacity will be distributed among five beneficiaries through a global competitive bidding process, with each allotted up to 1,200 metric tonnes per annum. The scheme will run for seven years, including a two-year gestation period for establishing facilities and five years of incentive disbursement.

Officials described the initiative as a landmark step towards strengthening the domestic REPM manufacturing ecosystem. By fostering indigenous capabilities, the scheme is expected to generate employment, enhance competitiveness and advance India’s long-term sustainability commitments. It embodies the government’s vision of building a technologically self-reliant and globally competitive industrial base under the framework of Viksit Bharat @2047.

The implications for industry are wide-ranging. For the automotive sector, domestic REPM production will support the expansion of electric vehicles, reducing reliance on imported components and improving cost efficiency. In defence and aerospace, secure access to magnets will strengthen supply chains for critical technologies. Renewable energy projects, particularly wind power, will benefit from reliable domestic supply, while consumer electronics manufacturers will gain from reduced import dependence.

The scheme also signals India’s intent to compete in a market currently dominated by a handful of countries. By investing in integrated facilities, India aims to capture a share of the global REPM market, which is expected to grow significantly in the coming decade. The competitive bidding process is designed to attract capable players and ensure that facilities are established on a sound commercial basis.

The timing of the initiative is notable. Global demand for rare earth magnets is rising sharply, while supply chains remain concentrated and vulnerable to geopolitical pressures. India’s move to establish domestic capacity reflects both economic pragmatism and strategic foresight. By reducing import dependence, the country is seeking to insulate its industries from external shocks and build resilience in sectors critical to national growth.

The Union Cabinet’s approval of the scheme underscores the government’s commitment to aligning industrial policy with sustainability goals. By supporting REPM manufacturing, India is not only strengthening its industrial base but also advancing its net zero 2070 target. The magnets are essential for technologies that reduce carbon emissions, from electric vehicles to renewable energy systems, making the initiative a cornerstone of India’s climate strategy.

As the scheme moves into implementation, attention will turn to the bidding process and the establishment of facilities. The success of the initiative will depend on the ability of selected beneficiaries to build integrated manufacturing capacity and deliver magnets that meet global standards. If successful, the scheme could mark the beginning of a new chapter in India’s industrial development, with rare earth permanent magnets at its core.

Production Linked Incentive scheme attracts ₹1,914 crore in fresh investments with strong MSME participation

Mumbai: The fourth round of the Production Linked Incentive (PLI) Scheme for White Goods has attracted 13 new applications worth ₹1,914 crore, with more than half of the applicants being micro, small and medium enterprises (MSMEs). Officials said the level of MSME participation reflects growing confidence among smaller firms in joining the air conditioner and LED manufacturing value chain.

Nine applicants have committed ₹1,816 crore to air conditioner components such as copper tubes, aluminium stock, compressors, motors, heat exchangers and control assemblies. Four others have pledged ₹98 crore for LED components including chips, drivers and heat sinks. The proposed projects span six states, 13 districts and 23 locations, and are expected to contribute to regional industrial growth and employment generation.

The scheme, launched in 2021 with an outlay of ₹6,238 crore, aims to establish a complete component ecosystem for air conditioners and LED lights in India. So far, it has attracted ₹10,335 crore of committed investment from 80 approved beneficiaries. The government expects the scheme to generate production worth ₹1.72 lakh crore and create around 60,000 direct jobs nationwide. The initiative is designed to increase domestic value addition from the current 15–20 per cent to 75–80 per cent, positioning India as a global manufacturing hub for white goods.

Officials noted that the strong presence of MSMEs in the latest round is significant, as it broadens the base of manufacturers and strengthens supply chains. By encouraging smaller enterprises to invest in high-value components, the scheme is expected to reduce import dependence and enhance competitiveness in the sector.

The PLI programme has already spurred localisation of production and attracted investment in critical components. With MSMEs now taking a larger share of participation, the government sees further momentum in building a resilient domestic manufacturing ecosystem for white goods.

From achieving perfection to perfecting imperfection

Mumbai: For decades, the global marketplace was defined by an unyielding drive towards perfection. Manufacturers poured resources into designing ever-better products, each new release striving for greater reliability, longer lifespans, and seamless user experience. It was an era where premium brands boasted near-flawless craftsmanship and durability as hallmarks of their leadership. But beneath the sheen, the relentless pursuit of perfection eventually collided with an inconvenient truth: impeccably made products, while satisfying, often failed to generate the recurring profits that modern corporate realities demanded. The consumer’s purchase, once an end point in the transaction, became a barrier to future sales – a phenomenon keenly observed in the boardrooms of industry giants, from Detroit to Shenzhen.

As the 20th century drew to a close, a quiet revolution in business thinking began to take hold. Companies realised that a perfect product, paradoxically, might undermine economic sustainability. Once an appliance lasted a lifetime, its manufacturer was left to chase ever-diminishing returns, unable to attract repeat customers or sustain the manufacturing machinery that powered their expansion. It was this dilemma that opened the door to a concept now etched in modern business lore: planned obsolescence. By intentionally limiting the useful life of a product – whether through wear-prone parts, proprietary components, or software updates that render older models sluggish – manufacturers found a way to tip the equation back in their favour. As Investopedia explains, planned obsolescence describes ‘a deliberate strategy of shortening the lifecycle of products to force customers into repeat purchases and upgrades’.

This underlying shift was neither accidental nor surreptitious. For example, the light bulb industry’s infamous Phoebus cartel of the 1920s colluded to reduce the lifespan of bulbs, ensuring customers returned to the shops every few years rather than once or twice in their lives. In more recent decades, the smartphone has emerged as the emblem of calculated imperfection. Brands like Apple have periodically introduced design changes that make previous accessories obsolete, and operating system updates that favour new hardware. Similarly Apple’s notorious removal of the headphone jack spurred an entirely new market for wireless earbuds, prompting both direct profits and peripheral sales. As Professor Giles Slade, author of ‘Made to Break’, observed, most manufacturers in the modern economy do not want their products to last forever – their profits depend on replacement cycles, upgrades, and the sale of related accessories.

The business rationale is clear. By selling imperfect products – or products engineered with natural limitations – companies keep their vast manufacturing plants humming year-round. Just as automotive designers in the mid-century realised that subtle changes to vehicle aesthetics would drive every new season’s model, consumer electronics firms now perfect the art of imperfection, enticing repeat visits with ever-shinier alternatives. Planned obsolescence becomes an operating philosophy: the ideal product is one that satisfies, but only briefly. By the time a device falters, its owner is psychologically predisposed to seek the next iteration, sparking demand not just for the core item but a web of cables, chargers, batteries, and software solutions surrounding it.

This approach is especially visible in household items. Older appliances like fridges or washing machines used to last for decades. Today’s versions, made with lighter materials and modular parts, often need repairs or replacements within a few years. This keeps customers coming back – either for spare parts or new purchases – and ensures steady income for manufacturers.

From a macroeconomic perspective, the outcome is twofold. On one hand, manufacturers enjoy greater financial predictability, smoothing the cyclical swings that once threatened factory closures and mass layoffs. On the other, this artificial reduction in product lifespans imposes considerable costs on consumers and society at large. 

Not only are households spending more, but growing volumes of waste – from electronics to household goods – present environmental and ethical problems policymakers now grapple with. The ‘Right to Repair’ movement, which has gained traction in Europe and beyond, aims to challenge these business practices, pressing companies to favour sustainability and give consumers more control over their purchases.

Still, for most brands, the strategy of perfecting imperfection remains lucrative. According to reports businesses employing planned obsolescence typically enjoy higher margins and repeat engagements. And by embracing imperfection – not as a flaw, but as a strategic tool – manufacturers can optimise plant operation, workforce deployment, and product pipeline management. Consumer psychology, too, plays a role. 

Studies also suggest that customers respond favourably to product cycles, associating short-lived versions with innovation and progress rather than failure or exploitation. This logic is supported by the regular queues outside electronics stores with every new gadget release and by the enduring popularity of annual model upgrades across industries.

Of course, not all product flaws are intentional; sometimes, technical limits or cost pressures lead to shorter lifespans. However, there is a fine line between engineering limitations and purposeful design choices, and this space is exploited by imperfect competition—a market scenario wherein companies are free to manipulate quality, life expectancy, and accessory compatibility to shape consumer experience and, by extension, consumer loyalty. 

This strategy, which may have begun as a response to technological bottlenecks, has thus evolved into a calculated method for retaining relevance, maximising revenue, and defending market share.Looking ahead, some businesses are exploring more sustainable designs – products that can be repaired or upgraded easily. But the basic idea of planned obsolescence still dominates. The challenge now is to balance profits with responsibility. Companies that manage imperfections wisely – without losing customer trust – are likely to succeed in the long run.

In the end, the most successful businesses will move beyond creating artificial scarcity – instead perfecting imperfection in a way that fosters trust, durability, and true lasting value. In this new era, the challenge is not to eliminate flaws, but to manage them wisely, so that business sustains itself without sacrificing the goodwill of its market.

Samsung chants ‘Made in India’ with new edition of smartwatches

Company has now started manufacturing entire range of 18 smartwatches in India

Samsung Electronics, the South Korean multinational conglomerate, said that its new edition of smartwatches are the first ones to be “Made in India”. The smartphone maker introduced an aluminium edition of its Galaxy Watch Active2 4G smartwatch and now claims to have the largest and most diverse 4G watch portfolio in the country.

Mohandeep Singh, senior vice president - mobile business, Samsung India, said, "The aluminium edition is our most affordable 4G watch now. It's also the first smartwatch to be made in India. With Galaxy Watch Active2 4G, we have also started manufacturing our entire range of 18 smartwatches in India as part of 'Make for India' programme.”

With the launch of Galaxy Watch Active2 4G Aluminium edition, Samsung’s 4G smartwatch range now comprises nine distinct colour finishes, three sizes (42mm, 44mm and 46mm) and two unique design templates - elegant classic of the Watch 4G and modern minimalistic of the Watch Active2.

The Galaxy Watch Active2 Aluminium edition, according to Samsung India, is meant to complement the needs of ‘on the go’ consumers, enabling them to keep a track of their fitness goals and stay connected with the world, even without their phone at hand. Priced at Rs 28,490/- the smartwatch will start retailing from July 11, 2020 across retail stores, Samsung Opera House, Samsung.com and leading online portals.

(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)