India is investing over $10 billion to boost rare earth mining, processing, and manufacturing, with new corridors planned in four coastal states. The move aims to reduce reliance on China, strengthen clean energy and EV supply chains, and position India as a global hub for critical mineral resources.
In a bold step toward self-reliance, India has unveiled a $10 billion plan to develop rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. Announced in the Union Budget 2026, the initiative builds on the Rare Earth Permanent Magnets Scheme introduced in November 2025.
The corridors will focus on mining beach sand monazite deposits, processing rare earth elements, and integrating them into domestic manufacturing for clean energy, electric vehicles, and defense applications. The government has also introduced customs duty exemptions and exploration incentives to attract private and foreign investment.
Analysts note that this strategy is designed to counter China’s dominance in rare earth supply chains, which currently accounts for nearly 70% of global production. By securing its own reserves, India aims to strengthen its industrial base and reduce vulnerability to geopolitical risks.
Key Highlights
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Investment Size: $10 billion allocated for rare earth development.
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Corridor States: Odisha, Kerala, Andhra Pradesh, Tamil Nadu.
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Strategic Goal: Reduce dependence on China’s rare earth supply.
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Industrial Focus: Clean energy, EVs, defense, and advanced manufacturing.
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Policy Support: Customs duty exemptions and exploration incentives.
This initiative positions India as a rising player in the global rare earth market, enhancing both economic competitiveness and national security.
Sources: India Today, Bitget News, Domain-b.com