BUDGET
To support rare earth corridors in Odisha, Kerala, Andhra, Tamil Nadu
This story was originally published at 16:47 IST on 1 February 2026
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-- BUDGET: Propose supporting Orissa, Kerala for rare earth corridors
-- BUDGET: Propose supporting Andhra, Tamil Nadu for rare earth corridors
MUMBAI – The government will support the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, and research and manufacturing, Finance Minister Nirmala Sitharaman said in her speech while presenting the Union Budget for 2026-27 (Apr-Mar) to the Lok Sabha.
Rare earths are a group of 17 elements, including 15 silvery-white metals called lanthanides, or lanthanoids, plus scandium and yttrium. India has a substantial base of rare-earth minerals, particularly monazite deposits located across several coastal and inland regions. These deposits contain about 13.15 million tonnes of monazite, holding an estimated 7.23 million tonnes of rare-earth oxides. These occur in coastal beach sands, teri/red sands, and inland alluvium in Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat, and Maharashtra. These oxides serve as the primary raw material for downstream rare-earth industries, including permanent magnet manufacturing.
In late 2025, the Union Cabinet had approved a scheme to promote manufacturing of sintered rare earth permanent magnets with an outlay of INR 72.80 billion. While India has a strong rare earth resource base, domestic production of permanent magnets is still evolving and imports continue to meet a large part of current requirements. Official trade data indicates that India sourced a major share of its permanent magnet imports from China during 2022–23 to 2024–25. End
Reported by Prateem Rohanekar
Edited by Deepshikha Bhardwaj
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