India Wants China-Free Magnets. Its Raw Material Plan Says Otherwise

By Dev Chandrasekhar

The Ministry of Heavy Industries opened technical bids in August for India's first rare earth magnet plants. It received 20 bids that are now under evaluation, and five winners will be named in the coming months.

The turnout is being read as proof that India can build its way out of dependence on Chinese magnets.

A closer reading of the tender will tell you that the scheme, meant to reduce dependence on China after the country restricted magnet exports, will fund plants that will run largely on oxide that China refines.

Dependence is not being removed so much as moved one step up the supply chain. 

Why?

In economic terms, India would keep the later stages of the chain, the metal, alloy and sintering work with their jobs and margins, while the largest input cost and the permission to buy it stay with Beijing. 

Any rise in the Chinese oxide price, or delay in a licence, passes straight into Indian plants whose subsidy per kilogram is fixed at the bid.

China accounted for more than 80% of India's permanent magnet imports by quantity in recent years. Its April 2025 licensing curbs on magnet exports disrupted Indian factories within weeks. 

The Union Cabinet approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets in November 2025. 

Announcing the decision as information and broadcasting minister, the government's Cabinet briefer, Ashwini Vaishnaw, called it a "very important, strategic decision" and said India would be self-reliant in rare earth magnets within three to four years. 

What’s The Problem?

A sintered magnet is made in four steps. 

Ore is refined into neodymium-praseodymium oxide, the oxide is reduced to metal, the metal is alloyed with iron and boron, and the alloy is pressed and heat-fused into a magnet. 

The tender requires winners to do the last three in India, and "integrated" is the word it uses.

India only has the first step.

IREL (India) Ltd, the Department of Atomic Energy company that mines beach sands in Kerala and Odisha, refines about 400 tonnes of oxide a year, enough to support roughly 1,200 tonnes of magnets, or about 1,500 with its stockpile. 

No other Indian company refines oxide at scale. Monazite, the beach-sand mineral that holds India's rare earths, is a prescribed substance under the Atomic Energy Act because it carries thorium, and IREL is the public sector company mandated to turn it into high-purity oxide. 

The one other processing unit of note, Toyota Tsusho's plant in Visakhapatnam, ran on IREL's feed, and battery and e-waste recyclers recover oxide only in small lots. Beyond that point, the chain stops.

Indian factories make ferrite magnets for speakers and toys, and a few mould-bonded magnets from imported Chinese powder, but the tender itself states that every sintered magnet India uses is imported.

The recipe has a second gap. 

Magnets that must keep their strength inside a hot motor or a wind turbine's generator also need dysprosium or terbium. 

These are heavy rare earths that IREL does not produce in meaningful quantities. China controls these even more tightly than the light ones.

These 7 Stocks Are Built to Outlast the Market

Some stocks are built for a quarter… others for a lifetime.

Our 7 Stocks to Buy and Hold Forever report reveals companies with the strength to deliver year after year - through recessions, rate hikes, and even the next crash.

One is a tech leader with a 15% payout ratio - leaving decades of room for dividend growth.

Another is a utility that’s paid every quarter for 96 years straight.

And that’s not all - we’ve included 5 more companies that treat payouts as high priority.

These are the stocks that anchor portfolios and keep paying.

You can download this report for free as of today, but it won’t be free forever.

This is your chance to see all 7 names and tickers - from a consumer staples powerhouse with 20 years of outperformance to a healthcare leader with 61 years of payout hikes.

Claim Your Free Copy Today

10 million metric tonnes

That’s how much India’s rice production is expected to fall this year, the Rice Exporters’ Association told Reuters.  

That would mean a nearly 6.5% drop from last year’s record 154 million tons, and the biggest decline in nearly two decades.

How We Got Here: India’s rice crop is taking a hit from weak rainfall. The country has received 15% less rain than normal since the monsoon began on June 1, while the deficit has reached as much as 42% in some rice-growing states. 

A prolonged dry spell has reduced yields, particularly in southern and eastern India. The area planted with summer rice has also fallen nearly 4% from a year ago.

Context: India is the world’s largest rice producer and exporter, so a drop in output could affect both domestic and global markets. Local rice prices have already started rising, while export prices have climbed to their highest level in more than a year.

But India has some cushioning in its record stockpiles.

Government reserves, including unmilled paddy, stood at 59.6 million tonnes on September 1, well above the 10.3 million-ton target. That should allow India to maintain exports even with lower production.

Tatas Stir Controversy, Again!

Tata Trusts, which owns 66% of Tata Sons, has strongly objected to the board's decision to give N Chandrasekaran another five-year term as chairman. The Trusts called the move a "legal nullity," saying the company's rules require a majority of its two nominee directors to approve such a decision.

The Core earlier reported how Chandrasekaran’s exit could trigger more than a routine boardroom succession.

Fast Facts: In a statement, the Trusts said four directors voted for Chandrasekaran's reappointment, but Noel Tata, one of the Trusts' nominees, voted against it, making the resolution invalid. They also said Chandrasekaran's earlier decision on August 12 not to seek another term was final, since employees, lenders and the market had already acted on it.

Catch Up Quick: At Thursday's board meeting, Noel Tata opposed Chandrasekaran's reappointment and the company's potential listing as well, Reuters reported. Chandrasekaran, 63, and Tata Trusts have been at odds for months over several issues, including the possible listing, Air India's losses, and how to handle a minority shareholder's exit from the group.

Overview: The Tata group is currently dealing with growing losses at Air India, a steep decline at Jaguar Land Rover, and the fallout from a data breach that affected clients like Apple and Tesla. The reappointment drama also comes soon after the RBI turned down Tata Sons' request to avoid a mandatory stock market listing.

India Warns Of Trade Fallout

India has warned that the new US bill targeting buyers of Russian oil could affect bilateral ties, while reaffirming that energy security will remain a priority.

The Lead: The Ministry of External Affairs said New Delhi had already raised concerns with US officials over the potential impact of the legislation on India-US relations and global energy markets. India also said it would continue sourcing energy from different suppliers based on market conditions and take necessary steps to protect its trade and economic interests. 

Flashpoint: The warning came after the US House of Representatives passed the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The bill gives President Donald Trump the authority to impose tariffs of up to 100% on countries including India and China that continue buying Russian oil and gas. It now awaits Trump’s signature.

Context: The move adds another layer of tension after the US previously imposed higher tariffs on Indian goods over New Delhi’s Russian oil purchases. Russia has become a major source of India’s crude imports since Western sanctions on Moscow began in 2022. Russia’s Kremlin said that if US President Trump signs the bill, it could impact a potential peace deal with Ukraine, which the country has been at war with since 2022.

Oil India Eyes Russian Payout

Oil India is looking for ways to bring back $300 million in stranded dividend money from Moscow, chairman Ranjit Rath told shareholders on Thursday. The money comes from the company's stake in two Russian oil assets, held jointly with Indian Oil Corp and Bharat PetroResources.

The Lead: The funds are sitting in the Moscow branch of State Bank of India, but Western sanctions imposed on Russian entities and banks over the Ukraine war have made it difficult to move the money out of the country, since many international banking channels used for such transfers are now restricted or blocked.

It is only a matter of time. We will find a way to transfer the amount, Rath said, without detailing how the company plans to get the funds back.

Context: Recovering the money would give Oil India access to cash earned from its overseas investments, which it could use to fund domestic projects, including refinery expansion and pipeline work.

NSE IPO Gets Subdued Response

The National Stock Exchange of India's (NSE) Rs 225.69 billion ($2.3 billion) IPO was subscribed 42% on its first day of bidding on Thursday, pointing to a lukewarm initial response to the widely watched share sale.

The IPO received bids for 37 million shares against 88.6 million on offer, as of 5:03 p.m. IST, exchange data showed. Analysts said subscription could pick up as institutional investors enter the issue, Reuters reported.

Overview: The IPO, among India's biggest on record, comes as the primary market attracts major issuers, including billionaire Mukesh Ambani-backed Jio Platforms. The offering is an offer-for-sale by existing shareholders.

For comparison, NSE is seeking a valuation of up to $46 billion, 15% to 20% lower than its pre-IPO roadshow pitch, amid a slowdown in options trading activity.

Fast Facts: Anchor investors were allotted shares worth $703.04 million, including Norway and Abu Dhabi sovereign wealth funds.

Retail and non-institutional investors subscribed 42% and 70%, respectively, while qualified institutional buyers subscribed 19%.

NSE has also been losing market share in index options to rival BSE.

One idea shouldn't take six rewrites to post.

Posting everywhere means rewriting one idea six times, so you post to one, or none. SureThing turns one idea into native posts for every platform.

Put It on Autopilot

Markets Flat As They Digest Falling Oil Prices

On Episode 982 of The Core Report, financial journalist Govindraj Ethiraj talks to Anuj Kapoor, Managing Director and CEO, Private Wealth at JM Financial as well as Ratan Kumar Kesh, Executive Director & COO at Bandhan Bank.

• Markets Flat As They Digest Falling Oil Prices

• India Puts Its Foot Down On Potential US Tariff Threat On Russian Oil Purchases

• The Tata Group’s Squabbles Have Blown Into A Full-Blown Public Spat

• Managing Wealth Through Transition, A Wealth Manager’s View

• How The Banking System Lifts Marginalised Businesses To Grow, New Insights