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.
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.
1 January 2026
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