US EditionUnion Budget 2026: What Is the Rare Earth Corridor? Why Is India Betting Big on It Now?
The initiative aims to reduce import dependence by boosting mining and manufacturing of rare earth magnets, supporting a Rs 7,280 crore scheme and 6,000 MTPA domestic capacity.
- On February 1, 2026, the Union Finance Minister announced dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu during her Union Budget 2026-27 speech.
- Amid growing import dependence, the government noted China controls nearly 90% of refined output and India’s rare earth imports rose from $14.1 million in 2014 to $17.5 million in 2024 with over 53,000 metric tonnes imported by March 2025.
- The Sintered REPM scheme carries Rs 7,280 crore, with Rs 6,450 crore in sales-linked incentives and Rs 750 crore as capital subsidy for five beneficiaries, supporting up to 1,200 MTPA each.
- Focused support aims to build an integrated domestic ecosystem for rare earths, enabling Indian firms to move up the value chain as REPM consumption doubles by 2030 with EV and renewable energy growth.
- Markets reacted: mineral-focused stocks rose, with Orissa Minerals Development Company trading near Rs 4,776 and Gujarat Mineral Development Corporation around Rs 617.8, amid safety considerations from monazite’s radioactive elements.
15 Articles
15 Articles
Union Budget 2026: What is the rare earth corridor? Why is India betting big on it now?
Budget 2026: Finance Minister Nirmala Sitharaman announced rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu while presenting the Union Budget 2026-27. The plan builds on a Rs. 7,280 crore scheme approved in November 2025 to establish 6,000 MTPA of rare earth permanent magnet manufacturing capacity in India
Union Budget 2026-27: Why the push for Rare Earth Corridors in Odisha, Kerala, Tamil Nadu and Andhra Pradesh
Union Budget 2026-27: Nirmala Sitharaman proposed establishment of dedicated rare earth corridors in the coastal states Odisha, Kerala, Andhra Pradesh and Tamil Nadu. Here's why
Budget 2026: FM Announces Rare Earth Corridors, ₹20,000 Cr Carbon Capture Scheme
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026 on 1 February, announced the establishment of dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing of critical minerals.As reported by Financial Express, the rare earth corridors will be established in mineral-rich states, with Kerala and Tamil Nadu highlighted for their coastal sands co…
Budget 2026: Rare earth corridors proposed as India navigates China’s sectoral dominance
Finance Minister Nirmala Sitharaman announced in her Union Budget 2026 speech that the government will support the mineral-rich States of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in establishing rare earth corridors to promote the mining, processing, research, and manufacturing of critical minerals.
Budget 2026: FM Nirmala Sitharaman announces rare earth corridors in four states, including Tamil Nadu
Finance Minister Nirmala Sitharaman on Sunday proposed extending support to mineral-rich states such as Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for setting up dedicated rare earth corridors. Presenting the Union Budget for 2026–27, Sitharaman recalled that a scheme for rare earth permanent magnets was launched in November 2025. Under this, the government approved the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets…
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