New Delhi: Presenting her ninth straight Budget this year in the Parliament, Union Finance Minister Nirmala Sitharaman announced rare earth corridors. These rare earth corridors will come up in Kerala, Tamil Nadu, Odisha, and Andhra Pradesh. The announcement marked India’s decisive move in securing control over the minerals that power modern economies.
Notably, rare earths are a group of 17 elements that are crucial in a large number of items. Be it electronic items like smartphones, to electric vehicles. These items are even crucial for fighter jets . The aim is to counter China, which accounts for 60 percent of global mine production and close to 90 percent of refined production as well as rare earth magnet output.
How will these corridors help?
“The scheme for rare earth permanent magnets was launched in November 2025. We are now proposing to support the mineral-rich states like Kerala, Odisha, Andhra Pradesh, and Tamil Nadu to establish dedicated rare earth corridors. These corridors will help in promoting mining, processing, research, and manufacturing,” the finance minister said in her Budget speech.
The Beach Sand Minerals (BSM) is among the main ores of are Earths (RE) in India. The prescribed substance monazite occurs in the BSM, which is a phosphate mineral. This phosphate mineral contains Uranium and Thorium.
Proposal in line with scheme announced earlier: Sitharaman
In her speech, the finance minister said that the proposal was in line with the scheme that was announced recently. to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM). This will be promoted with the financial budget of Rs 7,280 crore. Under the scheme, the government will support 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity. The same will be distributed among five beneficiaries selected through bidding process.