Rare earth crunch threatens India’s drone self-reliance push: Report

As drone warfare comes under the global spotlight, India also sees export potential, especially for countries priced out of traditional defence equipment like fighter jets or missiles. (Representative image)

India’s drone industry is witnessing rapid growth, driven by increased defence demand, rising investor interest, and robust government support.

With more than 515 drone-related firms and over $100 million in funding in 2024 alone, the sector is poised for a major leap, as per a report by the Mint.

However, a critical gap threatens to stall progress -- dependence on imported components --particularly rare earth magnets used in drone motors, states the report.

While Indian manufacturers have made progress in developing indigenous airframes, batteries, and flight software, essential parts like sensors, flight controllers, and motors remain largely import-dependent.

At the core of this challenge is India’s inability to produce high-strength rare earth magnets, which are vital for lightweight, high-performance drone motors.

Most of these magnets are imported from China, which has recently tightened export restrictions, particularly for components flagged for defence use.

Startups like Raphe mPhibr are attempting to bridge this gap, states the report by Mint.

Having raised $100 million recently, the firm is reportedly setting up local magnet manufacturing capacity. CEO Vivek Mishra, cited in the report, states that while efforts have gained momentum, it will take time before India has end-to-end control over this critical component supply.

The Central government-backed initiatives, such as the Production-Linked Incentive (PLI) scheme, the iDEX programme, and the Technology Development Fund (TDF), have injected much-needed capital and confidence into the sector. Notably, these schemes have helped startups like IdeaForge and Zuppa reach 70–80 percent indigenisation, particularly in software and hardware design.

The lack of indigenous magnet manufacturing, however, is a weak link in India’s push for drone self-reliance.

As drone warfare comes under the global spotlight, India also sees export potential, especially for countries priced out of traditional defence equipment like fighter jets or missiles.

To become a truly global drone hub, nevertheless, India needs to address its dependency on rare earth magnets. It should be mentioned here that countries like the US, Australia, and Japan have already begun securing their own rare earth supply chains. For India, matching that effort is now essential.