Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu
The proposed corridors will focus on strengthening domestic capabilities across the rare earth value chain, covering extraction, processing and manufacturing activities. The finance minister said the initiative aims to enhance domestic production and reduce import dependence.
The Centre will establish dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu to promote mining, processing, research and manufacturing, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026
The proposed corridors will focus on strengthening domestic capabilities across the rare earth value chain, covering extraction, processing and manufacturing activities. The finance minister said the initiative aims to enhance domestic production and reduce import dependence.
India holds significant reserves of rare earth elements, which are critical for sectors such as electronics, renewable energy, defence equipment and advanced manufacturing. The government’s proposal seeks to support the development of these resources within the country by creating dedicated infrastructure and industrial ecosystems in mineral-rich states.
In a related announcement, the finance minister said the government will launch a scheme to support states in establishing three dedicated chemical corridors. The scheme will be implemented through a challenge-based route, with a focus on cluster-based development .