It has been announced to create Rare Earth Corridor in Budget 2026.
In Budget 2026, Union Finance Minister Nirmala Sitharaman has made an announcement which is considered very important both in terms of future technology and global politics. This is the announcement of the construction of ‘Rare Earth Corridor’. The Finance Minister has made it clear how important it is to strengthen the supply chain in the changing global circumstances. This step can prove to be a milestone in reducing dependence on countries like China and making India a global manufacturing hub. This decision of the government is not just an economic policy, but a preparation to become a ‘superpower’.
Roadmap to end China’s monopoly
The whole world knows that today China holds the key to the high-tech industry, because it is the largest supplier of rare earth elements. Some time ago, when China limited its supply, there was a stir in the entire world market. Considering this risk, the Indian government has now tightened its belt. The Finance Minister said that new technology is completely changing the production system. In such a situation, the demand for water, energy and critical minerals has increased rapidly. India will now create its own supply chain instead of depending on imports, so that areas like clean mobility and battery manufacturing can be given impetus.
Corridor will be built in these states of South India
The blueprint of this ambitious project has been prepared. According to the government’s plan, ‘Rare Earth Corridor’ will be developed in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. The reason behind choosing these states is the mineral wealth present here. The main objective of this corridor is to create a special network for mining, processing and transportation of rare earth minerals within the country. When these mineral-rich states will be connected, not only will production capacity increase, but bottlenecks in the supply chain will also be eliminated. Industry experts believe that this will create new employment opportunities in India and promote innovation.
What is this ‘rare earth’ that is causing so much noise?
Actually, ‘Rare Earth’ is a special group of minerals, which is called the ‘backbone’ of modern technology. From the smartphone in your hand to the fighter jet flying in the sky, everything depends on it. They are used extensively in electric vehicles, wind turbines, renewable energy, security devices and aerospace industries. This is the reason why it is also being called the ‘new gold’ of today’s times.
The government has opened the treasury
In the budget, the government has opened the treasury to promote this sector. It has been proposed to remove the basic custom duty on ‘Monazite’ used in making high-end permanent magnets, which till now was 2.5 percent. Apart from this, relief in custom duty will also be given on import of machinery required for processing rare earth minerals.
As far as its removal is concerned, the process is quite complicated. First of all, these minerals are detected through geological survey. After mining, the stones are broken and made into powder. Then using different technologies the soil is separated and the minerals are dissolved in a special chemical solution. Only after refining, these elements become of high purity, which are suitable for use.