India Rare Earth Metals Market Zooming 2.1X to Cross USD 105 Million by 2032

Published | 31 December 2025

India Rare Earth Metals Market is flourishing primarily due to a surging demand for rare earth elements from thriving end use industries including electric vehicles (EVs), renewable energy, and strategically critical defense & aerospace, and a heightened focus on addressing national rare earth metals security.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated India Rare Earth Metals Market size by value at USD 50.93 million in 2025. During the forecast period between 2026 and 2032, BlueWeave expects India Rare Earth Metals Market to more than double its size at a significant CAGR of 10.94%, reaching a value of USD 105.33 million by 2032. The significant expansion of India Rare Earth Metals Market is primarily driven by the country’s increasing focus on strengthening its strategic self-reliance and a surging demand for rare earth elements from the nation’s thriving electric vehicles (EVs) and renewable energy sector. The Indian government’s favorable policies and incentives, such as National Critical Mineral Mission (NCMM) approved in January 2025 and the INR 7,280 crore worth Production-Linked Incentive (PLI) scheme for Rare Earth Magnets announced in November 2025 are projected to further boost the boost the growth of India Rare Earth Metals Market. As part of the global supply chain diversification to thwart China’s dominance in the global market, India is also forming partnerships with rare earth metals exporting countries, including Australia and Zambia.

Opportunity – Favorable Policies to Secure Rare Earth Metals

The government’s increasingly significant support through favorable critical mineral policies are projected to boost the growth of India Rare Earth Metals Market in the coming years. For instance, approved in January 2025 with the budget of INR 16,330 crore, the National Critical Mineral Mission (NCMM) aims to build end-to-end self-reliance in the value chain from exploration to processing. The PLI Scheme for Rare Earth Magnets, on the other hand, is the INR 7,280 crore incentive scheme approved in November 2025 to build a 6,000-million tons per annum (MTPA) domestic manufacturing capacity by 2032. The PLI scheme aims to set up a domestic ecosystem for Sintered Rare Earth Permanent Magnets (REPM). Also during 2025, India granted approval for a INR 1,500 crore recycling scheme to recover rare earth metals from the rapidly accumulating voluminous electronic waste across the country.

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Impact of Escalating Geopolitical Tensions on India Rare Earth Metals Market 

Escalating geopolitical tensions could impact the growth of India Rare Earth Metals Market. Increasing volatilities in political, military, trade, and economic conditions could significantly destabilize trade flows, supply chains, and investors’ confidence. Tariffs, sanctions, and regional conflicts, especially involving China and United States, increase costs and limit access to rare earth metals. During these uncertain times, the government looks for securing the supply chain of rare earth metals for its mission critical sectors. The import-dependent countries, like India, could be vulnerable to global shifts, while retaliatory measures threaten export competitiveness. Geopolitical, military, trade, and trade tensions force manufacturers to diversify sourcing and adopt risk-mitigation strategies, reshaping production dynamics.

South India Dominates India Rare Earth Metals Market

South India, particularly Tamil Nadu and Andhra Pradesh, accounts for the major market share of India Rare Earth Metals Market. The state governments in the southern part of India have established new manufacturing hubs to attract investments. For instance, Andhra Pradesh has an industry cluster for heavy rare earth elements (REEs) and Tamil Nadu has established a magnet manufacturing region. In May 2025, NLC India, headquartered in Tamil Nadu, signed a MoU with IREL Limited, based in Andhra Pradesh, to jointly explore and process critical minerals.

Competitive Landscape

India Rare Earth Metals Market is highly fragmented, with numerous players serving the market. Major companies dominating the market include Coal India Limited, Gujarat Mineral Development Corporation (GMDC), Hindustan Copper Limited (HCL), Hindustan Zinc, IREL (India) Limited, JSW Rare Earths, Kerala Minerals & Metals Ltd (KMML), Khanij Bidesh India Limited (KABIL), Midwest Advanced Materials (MAM), NLC India Limited (NLCIL), NMDC Limited, Toyotsu Rare Earths India, Trimex Sands, and V.V. Mineral. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in India Rare Earth Metals Market.

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The report's in-depth analysis provides information about growth potential, upcoming trends, and India Rare Earth Metals Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Rare Earth Metals Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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