Finance Minister Nirmala Sitharaman announced dedicated rare earth corridors for four mineral-rich states during her Union Budget 2026 presentation. This forward-looking initiative builds on the rare earth permanent magnets scheme launched in November 2025, targeting Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to advance mining, processing, research, and manufacturing.
Rare Earth Corridors Initiative
The dedicated corridors will create integrated ecosystems, unlocking the potential of rare earth elements critical for electronics, renewables, and defense technologies. By fostering localized production, these hubs aim to reduce import dependency, generate employment, and position India as a global leader in strategic minerals.
Chemical Parks for Self-Reliance
Complementing this, a new scheme will support states in establishing three dedicated chemical parks via a challenge-based, cluster model with plug-and-play infrastructure. This will enhance domestic chemical manufacturing, cut costs, and strengthen supply chains for industries ranging from agriculture to pharmaceuticals.
These measures promise economic diversification, innovation-driven growth, and enhanced national security through resource sovereignty.
