Why Budget 2026 Focuses on Rare Earth Corridors | Current Affairs | Drishti IAS

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In Budget 2026–27, Union Finance Minister Nirmala Sitharaman announced the creation of dedicated Rare Earth Corridors in the coastal states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. The move aims to promote mining, processing, research, and manufacturing of rare earth elements, especially through India’s rich beach sand mineral reserves containing monazite. This proposal aligns with the government’s ₹7,280 crore scheme to boost domestic manufacturing of Sintered Rare Earth Permanent Magnets (REPM), which are critical for electric vehicles, renewable energy, electronics, aerospace, and defence. With China dominating over 90% of global rare earth processing and India heavily dependent on imports, the initiative seeks to strengthen supply chain resilience, reduce import dependence, and build a competitive critical minerals ecosystem. The announcement is significant for UPSC aspirants under economy, science & technology, energy security, and geopolitics.
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