In a bold move to strengthen India’s strategic autonomy in critical minerals, Finance Minister Nirmala Sitharaman announced the creation of specialised rare earth corridors across the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu during the Union Budget 2026-27.
The initiative is designed to develop end-to-end capabilities in rare earth minerals—covering mining, processing, research, and advanced manufacturing. These corridors aim to transform India from a consumer of critical minerals to a self-reliant hub, reducing dependence on imports and enhancing the country’s technological and industrial capabilities.
Rare earth minerals are essential for modern technologies, including electric vehicles, renewable energy systems, electronics, and defense applications. Currently, China dominates the global supply chain for these minerals, which has exposed other countries, including India, to supply vulnerabilities. By developing its own rare earth corridors, India seeks to secure a reliable domestic supply chain, foster innovation in mineral processing, and encourage high-tech manufacturing in the country.
The corridors will not only boost mining and processing infrastructure but also promote research and development, ensuring the adoption of advanced extraction and refining techniques. The initiative is expected to generate employment, stimulate local economies in the participating states, and strengthen India’s position in the global strategic minerals market.
Experts view this move as a strategic step in India’s economic and technological roadmap, enhancing national security while supporting the growth of high-value industries such as electric mobility, renewable energy, and electronics manufacturing.
With this announcement, the Union Budget 2026-27 signals India’s determination to break dependency on foreign sources, reduce supply chain risks, and position itself as a competitive player in the critical minerals sector globally.