New Delhi: Union Finance Minister Nirmala Sitharaman on Sunday announced the creation of ‘rare earth corridors’ in mineral-rich states under the Union Budget 2026-27, a move aimed at strengthening India’s capacity in mining, processing, research and manufacturing of critical minerals.
Presenting the Budget in Parliament, Sitharaman said states including Odisha, Kerala, Andhra Pradesh and Tamil Nadu will be supported to develop dedicated rare earth corridors. The initiative is intended to harness regional mineral potential while reducing India’s dependence on imports for strategic materials.
“A scheme for rare earth permanent magnets was launched in November 2025. We now propose to support mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish rare earth corridors to promote mining, processing, research and manufacturing,” the finance minister said.
The proposal builds on the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets, which was approved by the Union Cabinet in November last year with a financial outlay of ₹7,280 crore. The scheme aims to set up 6,000 metric tonnes per annum of integrated rare earth permanent magnet manufacturing capacity in the country, positioning India as a significant player in the global supply chain for critical minerals.
Officials said the rare earth corridors are expected to provide an integrated framework linking extraction, value addition and advanced manufacturing, while also encouraging research and innovation in the sector.
In her initial remarks while presenting the Budget, Sitharaman said India’s economic trajectory over the past decade has been marked by stability, fiscal discipline and sustained growth. She underlined that the government has consistently prioritised reform and self-reliance, with Atmanirbharta remaining a central policy focus.
The finance minister presented her ninth consecutive Union Budget in Parliament on Sunday.
