Union finance minister Nirmala Sitharaman on Sunday proposed the institution of devoted uncommon earth corridors in Odisha, Andhra Pradesh, Tamil Nadu and Kerala as a part of the Union Price range for 2026–27, aiming to cut back India’s dependence on imports and strengthen home capabilities in important minerals.Presenting the Price range in Parliament, Sitharaman mentioned the Centre would “assist mineral-rich states to advertise mining, processing, analysis and manufacturing of uncommon earth parts and everlasting magnets”, that are essential for clear vitality, electronics, defence and electrical mobility. The finance minister mentioned, “The price range proposes elevating the Electronics Parts Manufacturing Scheme outlay from 22,999 crores to 40,000 crores, alongside new initiatives comparable to ISM 2.0, uncommon earth corridors, and devoted chemical parks.”The proposal builds on the scheme for uncommon earth everlasting magnets that was launched in November 2025, she mentioned, including that the federal government now proposes to scale up assist for states to determine devoted corridors targeted on the complete worth chain – from extraction to superior manufacturing.
Lowering import dependence
Uncommon earth minerals are a gaggle of 17 parts utilized in high-tech merchandise comparable to electrical car motors, wind generators, smartphones, semiconductors, defence techniques and precision electronics. India at present imports a major share of its uncommon earth necessities, with China dominating world manufacturing and processing.China controls a big portion of the world’s uncommon earth refining capability and has, lately, tightened export controls on important minerals, elevating considerations over provide disruptions for manufacturing economies like India.The proposed corridors are aimed toward constructing home capability and insulating Indian business from world provide shocks.
Polls certain states in focus
Two of the 4 states recognized for the proposed uncommon earth corridors – Tamil Nadu and Kerala – are scheduled to go to Meeting polls later this yr, bringing added political consideration to the Price range announcement. Each states have important coastal mineral reserves, together with monazite-rich sands that include uncommon earth parts, making them central to India’s important minerals technique. The proposed assist for mining, processing and analysis infrastructure is anticipated to be intently watched within the run-up to the elections, significantly for its potential affect on funding, employment and industrial exercise within the states.
Chemical parks and manufacturing push
As a part of a broader industrial technique, FM additionally introduced a scheme to assist states in establishing three devoted chemical parks by means of a challenge-based route. The parks will comply with a cluster-based, plug-and-play mannequin to spice up home chemical manufacturing and additional minimize import dependence. The measures are aligned with the federal government’s push to strengthen capital items manufacturing and safe provide chains for strategic sectors.The Price range proposals come amid rising world competitors for entry to important minerals, with international locations accelerating efforts to localise manufacturing and processing of uncommon earths and different strategic supplies.
