Finance Minister Nirmala Sitharaman on Sunday announced the creation of dedicated rare earth corridors across mineral-rich states including Odisha, Andhra Pradesh, Tamil Nadu and Kerala, as part of India’s push to strengthen domestic supply chains for critical minerals.
Speaking during her ninth consecutive Union Budget speech, Sitharaman said the government will support these states to develop integrated ecosystems covering mining, processing, research and downstream manufacturing of rare earth elements.
“The scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing,” she said.
"The rare earths Corridors for mining, processing, R&D and manufacturing in Odisha, TamilNadu, Andhra and Kerala will boost growth, employment and mineral security," said Anil Agarwal, Chairman- Vedanta ltd.
3 February 2026
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Rare earth elements are crucial for clean energy technologies such as electric vehicles, wind turbines, solar panels, defence equipment and electronics, but India currently remains heavily dependent on imports particularly from China for both raw materials and processed components.
"This Budget reflects a shift from aspiration to execution. The creation of rare earth corridors in mineral-rich states addresses a critical supply-chain vulnerability by anchoring domestic manufacturing capabilities," says Vasudha Madhavan, CEO & Founder, Ostara Advisors.
