Rare-Earth Revolution: Budget Backs Corridors in Mineral-Rich Southern and Eastern States

Key Highlights:

Strategic initiative: The Union Budget 2026-27 proposes the creation of rare-earth corridors across four states—Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. These regions are rich in mineral reserves essential for electronics, renewable energy, and defense applications.

Economic impact: By tapping into domestic rare-earth resources, India aims to reduce import reliance, enhance self-sufficiency, and position itself as a global player in advanced manufacturing.

Regional development: The corridors are expected to generate employment, attract investments, and build infrastructure in mineral-rich coastal and industrial zones, driving inclusive growth in these states.

Global competitiveness: Rare-earth elements are critical for semiconductors, batteries, and defense technologies. The initiative aligns with India’s broader push to become a manufacturing hub for strategic sectors, complementing semiconductor and renewable energy missions.

Investor sentiment: At 11:23 AM IST, market analysts welcomed the announcement, noting potential benefits for mining, metals, and technology companies. The move is seen as a step toward securing India’s long-term industrial and national security interests.

Sources: Economic Times Budget Live, Business Standard, Moneycontrol, Press Information Bureau (PIB)