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In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman proposed the creation of dedicated rare earth corridors in the mineral-rich states of Odisha, Andhra Pradesh, Tamil Nadu, and Kerala.
The initiative aims to reduce India’s dependence on imports and strengthen domestic capabilities in critical minerals, particularly rare earth elements, which are essential for clean energy, electronics, defense, and electric mobility. The government plans to support these states in promoting mining, processing, research, and manufacturing of rare earth elements. Highlighting the broader strategy, Sitharaman noted, “The budget proposes raising the Electronics Components Manufacturing Scheme outlay from ₹22,999 crore to ₹40,000 crore, alongside new initiatives such as ISM 2.0 and rare earth corridors.”
The corridors are expected to build domestic capacity and protect Indian industries from global supply disruptions. With significant coastal reserves, including monazite-rich sands, Tamil Nadu and Kerala are poised to play a central role in the country’s critical minerals strategy. The initiative is also anticipated to attract investment, generate employment, and boost industrial activity in these states.
News by Rahul Yelligetti.
