We present the evidence of high-temperature ferromagnetism and optical behaviour of 5 atomic percent Fe doped In2O3 semiconductor. Enhanced transition temperature (927 K) is noticed for ferromagnetic to paramagnetic phase transition in the nanocrystalline material. Understanding of ferromagnetism in (In0.95Fe0.05)2O3 nanocrystalline material is explained by considering two basic indirect exchange interaction processes, one, in between spins of Fe2+ and Fe3+ magnetic ions through mediation of oxygen ion vacancy (i.e., Fe2+ − (↑) − Fe3+), and other, from exchange interaction processes which occurred in between spins of magnetic ions of Fe3+- Fe3+ or, Fe2+- Fe2+ through carrier mediation. From our calculation we have estimated the effective paramagnetic moment of (In0.95Fe0.05)2O3 nanocrystals as 1.62 μB/ formula unit. The optical band gap energy of (In0.95Fe0.05)2O3 magnetic semiconductor is evaluated as 3.6 eV.
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